In some cases, investors and developers are better off taking out a hard money loan than using a traditional loan.

So when is a hard money loan better for developers and investors?

Typically, hard money is a better choice when an investor or developer:

  • Needs to close quickly and following traditional funding routes would take too long. Often, banks and other traditional lenders take several weeks – if not longer – to process the paperwork on a loan.
  • Has several good opportunities but not enough cash to accept them all. Banks won’t extend credit if it appears you’ll become over-extended.
  • Wants to take advantage of an opportunity without the financial strength banks require. While your credit scores and financial history are important with a hard money loan, they carry far more weight with a conventional loan – and that can make it difficult to obtain financing in many cases.
  • Has credit through a lender, but the credit isn’t sufficient for the investment.

Credit and Hard Money

Although credit is important when you’re interested in borrowing hard money, usually the collateral is more important than a borrower’s credit history. Because these types of loans, which can be for up to 65 percent of the collateral’s after-repair value, or ARV, are typically short-term and designed for investment purposes, they’re often the way to success for investors and developers.

Are You Looking for a Hard Money Loan in Atlanta?

If you’re interested in obtaining a hard money loan in Atlanta or its suburbs, we can help.

Call us at 404-814-1644 or get in touch with us online. We’ll be happy to answer your questions and walk you through the application process. You can also apply online today.