Hard Money

What is “Rehabbing”?

If you’re a soon-to-be real estate investor, it’s time to familiarize yourself with the language – and one of the terms you’ll need to know is rehab.
What is Rehab in Real Estate?
The process of improving a house is called rehabbing – it’s what you do by fixing and upgrading the property to bring its value up enough so you can make a profit when you sell it.

A lot of people believe they need to be their own general contractors when they’re rehabbing a property, but that’s just not true – all you need to be is willing to find the right people to help you on your journey. You need to know how to find, hire and manage the people who are on your all-star team; those who will help you get the house in a more valuable condition.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

Getting Financing Through a Hard Money Lender

Financing is one of the most important aspects of fixing and flipping houses, but here’s where many people get it wrong: They should be working with a hard money lender, but they’re not.

The two biggest myths on financing fix-and-flips is that you have to work through a bank or you have to use your own cash to buy the house. You could end up missing a great deal because you’re not able to pull together the cash in time.
Why a Hard Money Lender Might Be Right for Your Transaction
Typically, working with a hard money lender is much faster than it is working with a traditional lender. Hard money lenders can give you money based on a house’s after-repair value, or ARV, too (that means they’ll lend you money based on what the house is going to be worth once you’re done making repairs and improvements, not what it’s worth now; that can give you extra leeway when it comes to paying for those repairs and improvements).
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

 

What is Deal Analysis?

For most people who are interested in flipping houses – the practice of buying a house in need of some TLC, fixing it up, and selling it – it makes sense to analyze every last dollar involved in the deal.

Unfortunately, not everyone knows how to do that.
What is Deal Analysis?
Deal analysis is the process by which you determine how much you can pay for a house in order to cover all the expenses of fixing it up and selling it. You want to make sure you can still make a profit after all that’s done – after all, that’s the point of flipping houses.

Here’s what you need to do: Determine the after-repair value, or ARV, by talking to experts in the area. Find out what homes with modern amenities are selling for in the area.

Now do the math. If you spend some of your hard-earned money on that house and it doesn’t sell, you’re going to lose everything you put in. If it does sell, but it takes months, you may not be making a big profit… but at least you won’t lose it all. The ultimate goal is to buy something, fix it, and sell it quickly (and at a price that nets you a healthy profit.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently […]

Finding Your Next Flip By Checking Out the Inventory

If you’ve decided to buy a house that needs some TLC, fix it, and sell it, you need to narrow your choices right off the bat.

That means you need to decide what type of inventory you’re going to focus on.
What is Real Estate Inventory?
Inventory is the term that refers to all the houses for sale in a particular category (like two-bedroom, one-bathroom houses or four-bedroom houses with three-car garages).
Why You Need to Look at ALL the Inventory
If you’re going to buy a house to fix up and sell, you need to look at all the inventory in the city. See what’s selling quickly, what sells the most, and what’s not selling. You want to find the right spot – a price range and home style that moves quickly and at competitive prices – before you make an investment.

If most of the houses in your city are selling at $150,000 and they all have three or four bedrooms and sizeable yards, then that’s probably where you want to start looking for deals.

Your real estate agent can help you find “distressed” homes – those that are in need of some work before a buyer will come along and fall in love.
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard […]

Before You Buy Your Next Fix-and-Flip…

If you’re like many people, you’ve toyed with the idea of buying a house, fixing it up, and selling it to another buyer – all for a tidy profit.

But before you buy, here’s what you need to know.
Before You Buy Your First Fix-and-Flip
Naturally, you need to plan ahead and make sure you can secure the financing you need to buy a home that you can fix up and sell. (Many people do this by getting a hard money loan.)

From there, you need to check out the local inventory. It’s best to do this with a local Realtor® who understands what you’re trying to do and who can find (and get you access to) properties listed in your price range that need a little TLC.

Check out the area, too. Is there a particular part of town you want to focus on because homes sell better there? Is there an area you want to avoid? Doing a little research now can save you a big headache (and lots of money) later.

Once you find the right house, figure out your offer. Your real estate agent can help you determine what’s right when it comes to making an offer, so listen to his or her experience!
Are You Looking for a Hard Money Loan to Buy a Property?
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes […]

Apps for Homebuyers

If you’re getting ready to buy a house, you may be wondering where to start. With advancements in technology, you won’t have to look much further than your phone. Mobile technology can help you find a knowledgeable Realtor®, calculate a budget, connect you to the Multiple Listing Service, and much more. Here are some useful apps for homebuyers.

Finding an Agent

The home buying process can be daunting at times. It’s a good idea to work with a qualified Realtor who can help you through the process. Most real estate professionals are referred by previous customers; however, they’ve changed the game in their marketing, and are now easier to reach than ever.

If you’re house hunting and driving by for sale signs, you’ll probably see the agent’s link to their website, or a text code to their own mobile app. You’ll find other apps, like Yelp, that will give you easy access to agent reviews.

Mortgage Calculator

Before you set out, you can find current mortgage rates, and get an estimate of how much home you can afford. Companies such as Bankrate and Quicken loans offer apps that can get you real-time information at just the touch of a button.

Multiple Listing Service (MLS)

You can get the most current listings with an MLS app. While there are many out there, technology is changing the way you can connect with your Realtor and get up-to-date information. Apps such as Homesnap allow you to search for information on a home—just by snapping a photo of it. It also allows you to interact with your agent without using multiple channels of communication.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check […]

Critical Areas to Inspect When Buying a House

If you’re like most people, your emotions sometimes cloud your judgement. While there’s nothing wrong with that in most cases, you can’t let your emotions get in the way when you’re a real estate investor.

There are some critical areas of a property that you’ll need to inspect—sometimes twice—to make sure you’re not falling into a money pit. Even if your inspection gets the green light, you may want to call a specialist for a second opinion. Here are some areas that could use a more thorough inspection:
Foundation
A home inspector will search for visible signs of foundation problems. They’ll check for cracks, deformations, and uniform settlement. If you suspect any problems, or if the inspection shows some areas of concern—you may want to get a second opinion. Spending some additional money on a licensed structural engineer, prior to buying the home, could save you time and money.
Heating, Ventilation, and Air Conditioning (HVAC)
The HVAC system in a home usually undergoes an unremarkable inspection during the home buying process. The equipment is investigated for the potential to heat or cool a home, but there’s usually a lot more to it. For an in-depth inspection that will tell you how the equipment is functioning, you may want to call an HVAC expert to do a check-up.
Plumbing
There is nothing taken for granted more than a home’s plumbing system. If the water comes from the faucets, and the toilets flush; it’s easy to assume that everything is in working order. It may be a good idea to have the home’s main septic line inspected by a professional plumber before you purchase a home. A plumbing pro can perform a more thorough inspection than a home inspector.

Do You Need a Hard […]

What is Working Capital?

Working capital, at least as it pertains to the real estate investing business, is money that you can use to fund improvements on an investment property.
Why People Choose Hard Money Loans for Working Capital
Because a hard money lender can provide working capital quickly, many people choose this route when investing in a property in Florida, Tennessee, and Georgia.
How Do You Calculate Working Capital?
Working capital is your current assets minus your current liabilities. For example, if you have $200,000 in assets but $195,000 in current liabilities, you have $5,000 in working capital.
How A Hard Money Loan Can Help You
When you borrow from a hard money lender, you get up to 65 percent of the home’s after-repaired value, or ARV. That means if you’re flipping a home that, when repaired, will be worth $100,000, you can borrow up to $65,000 to work on it.

Do You Need a Hard Money Loan in Atlanta, Nashville, or Florida?

If you’re an investor who needs a hard money loan, we may be able to help you. Check out our loan criteria to find out whether this type of financing is right for you, and be sure to explore our hard money loan FAQs.

You can apply for a hard money loan online or you can contact us at 404-814-1644.

 

 

  • Signs You Shouldn't Buy an Investment Property - Paces Funding, Atlanta Hard Money
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    Know When to Hold ‘Em… Signs You Shouldn’t Buy an Investment Property

Know When to Hold ‘Em… Signs You Shouldn’t Buy an Investment Property

As a real estate investor, you know how important it is to make each property an exceptional purchase. However, there are some properties that you should just pass on, no matter how eager you are to make a flip. Here are some red flags for property showings that should signal for you to move on to the next deal.

Wood rot. Examine the property thoroughly for signs of rotten wood. Wooden decks and floors surrounding tubs, toilets and sinks should be inspected. If you find signs of rot on the outside, there’s a good chance that behind the wall is even worse. Your home inspector will be able to point out specifics if you didn’t catch them when you first looked at the property (and this is yet another reason it’s so important to have a talented inspector on your team).
Inadequate repairs. A house with a long history is more likely to have amateur repairs. Sometimes the repairs are not up to code, especially when it comes to plumbing or electrical jobs, which means they should be fixed by a professional to prevent additional damage.
Old building materials. Aside from potentially being structurally unsafe, older building materials may contain lead, radon, or even dangerous levels of asbestos. Be sure to have the home tested for dangerous materials before you make a final decision to buy.
Roofing woes. Sometimes a house can look terrific everywhere but up top. Be sure to inspect the roof of any prospective property for holes, leaks, and weathered shingles that need to be replaced. Take a look at the gutters and chimney while you are poking around up there, too. Your inspector will conduct a thorough check, but it’s a good idea to […]

  • DIY Improvements - Get a Hard Money Loan in Atlanta GA
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    3 DIY Improvements You Can Make to Help Sell Your Flip Faster

3 DIY Improvements You Can Make to Help Sell Your Flip Faster

Although the real estate boom of the 2000s is long gone, there are still high-quality investments you can make, including fixing and flipping houses. However, you must be smart about your flip and pick the right home improvements that ensure you receive full asking price. Here are three DIY improvements to help your flip your house.
Faucets
Replacing old and dated faucets goes a long way in increasing the value of your flip. Installing a faucet is quick and easy, and if your flip has a modern appeal, try to install faucets with a refined yet sleek look.
Flooring
Installing new flooring or cleaning and polishing your existing floors will increase the value of your flip and enhance the appeal of your home’s interior. However, check the comps in your neighborhood, and if they all have hardwood floors, do not install laminate floors in your flip.
Light Fixtures
If your flip has antiquated light fixtures, replace them with some more modern looking fixtures. Consider installing an LED track lighting system; prices on LEDs has dropped significantly over the past several years, and they operate using regular household voltage.
Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn […]

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