If you’re like many people, you believe that it takes money to make money in real estate investing.
However, while that is true to an extent, you don’t need to be a multimillionaire to successfully invest in real estate.
How Much Money Do You Need to Invest in Real Estate?
When you are investing in real estate, you’ll need to come up with a down payment. That’s true whether you are using a low down payment FHA loan, traditional financing, or a hard money loan.
Typically, the down payment is a certain percentage of the home’s purchase price. With conventional lending, people usually pay as much as 20 percent of the home’s purchase price; with a hard money loan through Paces Funding, borrowers must contribute 15 percent of the project cost.
Where Do Many REIs (Real Estate Investors) Get the Money for Investments?
In many cases, real estate investors get the money for investments through hard money lenders in an Atlanta or the surrounding communities. Borrowing from a hard money lender enables investors to get quick cash that they pay back over short period (typically 6 to 12 months).
There are no prepayment penalties, and loan amounts can be up to up 65 percent of the after-repaired value of the collateral (the property). If a hard money loan is used for renovation or construction, the amount may be based upon the improved value.
Could a Hard Money Loan Help You Invest in Real Estate?
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.