When you’re interested in taking out a hard money loan in Atlanta, particularly if it’s your first time doing so, you probably have a lot of questions. One of the most common questions we hear is “What is asset-based lending?”
A hard money loan is a type of asset-based lending, so it’s worth exploring the answer.
What is Asset-Based Lending?
Asset-based lending, which applies to hard money loans and a number of other loan types, is a loan that’s secured by an asset. If you’re borrowing to invest in real estate, for example, the home serves as the asset. Some mortgages from traditional lenders are another form of asset-based lending; if you are unable to pay, the lender takes possession of the asset – in this case, the house – and sells it to recoup losses they’ve incurred.
Purchasing real estate isn’t the only reason people take out hard money loans. There are many entrepreneurs who use them for land development, building rehab and several other purposes.
Who Benefits from Asset-Based Lending?
Naturally, investors can benefit from asset-based lending, particularly when it comes to flipping houses and making other real estate transactions. In many cases, people who need a relatively modest amount of money who have a tough time securing traditional financing, small business owners and a number of other individuals can benefit from asset-based hard money loans.
Are You Thinking of Getting a Hard Money Loan in Atlanta?
If you’re considering taking out a hard money loan, we may be able to help you. If you have questions about how the hard money lending process works, call us at 404-814-1644 or get in touch with us online. We’ll be happy to answer your questions and help you get the money you need, whether you’re using it for a real estate investment or another purpose.