You would think that getting a small loan would be easier than getting a large loan. A lender would be more comfortable with giving out smaller loans because it means less risk on their behalf, right?
Actually, when it comes to borrowing money, it can be much harder to get a small loan than you may think.
The fact is that many lenders consider small loans to be a hassle. In fact, many lenders feel that a loan under $50,000 is “small,” and some institutions won’t lend less than $100,000.
The primary reason for this is the amount of time involved versus the return gain. From the lender’s perspective, a small loan takes the same amount of time and paperwork as a large loan does. Because most lenders are looking for the best returns, they prefer to work with larger loans.
Small loans can also be tough to get because of financial protection laws. These laws are targeted toward “predatory lending practices,” which means that the lenders are abusing their loan terms (typically in the form of hidden fees). However, the fines for violating these non-compliance laws are so high that many lenders do not want to take the risk with a small loan.
Fortunately, hard money lenders fill the void that large financial institutions leave when it comes to small and moderate loans. That’s not to say that hard money lenders only do small loans; in fact, we can lend up to $3 million.
Are You an Investor Who Needs a Hard Money Loan in ATL?
If you need a hard money loan in ATL or the surrounding areas, we may be able to help you.
Call us at 404-814-1644 or contact us online if you have questions. You can also learn about our loan process and apply for a hard money loan online today.