It’s a great time to flip houses in Atlanta: Atlanta’s entry-level homes are in extremely high demand. Across the nation, the housing inventory is historically low. Plus, over half of the available homes are consider on the high end price-wise. A mere 22 percent of homes on the market right now are considered entry-level homes. In Atlanta, entry-level homes are even less available. A mere 13 percent of all homes in Atlanta are entry-level homes.
Keep in mind that many homes out there are out of reach for first-time home buyers, because they can’t pass an inspection. Sometimes, it’s for small issues that professional investors can easily repair.
Let’s say that a young family wants an entry-level home. The home buyers have one daughter, are veterans and qualify for a VA backed loan. The VA loans is the only way they’re going to be able to get into a home, because VA loans come with no down payment and no PMI needed. Their debt-to-income ratio would be too high if you include PMI into the monthly payment. After all, one of them just took two years off to stay home with the child and they bought a new, safer family car. Though both are working now, they need two years of income history from both of them to qualify. So, they really need that VA backed loan. The problem is, the only homes they can find have something wrong with them that won’t pass the VA inspection. Some are missing fascia. One has a broken broken window. One home simply needs a new furnace. Regardless, they can’t get into those houses with their VA loan. So, that means they can’t get into those houses at all. That narrows down their options even further.
Now, you’re an investor. You have the ability to get a hard money loan, make the needed repairs and sell that house in a condition that the VA finds acceptable. Your entry-level investment home will not stay on the market long in Atlanta.
Are You Looking for a Hard Money Loan to Flip a House?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
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.