Developers

Real House Flipping Is Not Like The Reality TV Shows

If you’re a professional house flipper, you might get frustrated by the reality TV shows. We all know that real house flipping is nothing like how it’s depicted in the reality TV shows. For example, no handy investor  picks from a pool of three fixer-upper homes. A great deal of thought is put into investing. Dozens, sometimes hundreds of houses are considered before choosing a home to flip.

Market conditions and local dynamics are taken into consideration. Investors even take into consideration local ordinances, difficulty of permit processes compared to other areas, and the velocity of listed homes. Realistically, investors consider on average at least 75 homes before purchasing one to fix up and resell or fix up and rent.

Unfortunately, the general public thinks property investors breeze through the process making mounds of cash, just because they have funding. Realistically, it takes skill, smarts and determination to make a fortune flipping houses. We know, because we work with intelligent, dedicated craftsmen every day. We understand the industry and the need for expediency of funding. We take your job seriously, and look forward to working with you.

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 […]

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    Big Businesses Requesting Municipal Approval Indicates A Neighborhood Prime For House Flipping

Big Businesses Requesting Municipal Approval Indicates A Neighborhood Prime For House Flipping

Keep your eye on the neighborhoods in which big businesses try to get into. Is a Panera Bread or a McDonald’s requesting local permission to build? If you start to notice corporate interest in a particular neighborhood, that’s a good sign that an area is about to see a lot of growth. Want a lucrative investment property? Paying attention at city council meetings can be helpful. First of all, they might know something you don’t. Remember, they aren’t going to waste their money developing if their research departments feel the market doesn’t have potential. Also, once they are there, renters and buyers generally find the area more appealing. They bring job opportunities and convenience.

Also keep an eye on future plans for developments like parks or street upgrades. If a city has the go ahead to put in a new municipal park, think of how much more appealing the properties will be for buyers. Paying attention to these trends that indicate growth can help you maximize your profits when house flipping or purchasing rental properties.
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 […]

Tenants’ Improvements and Betterments (TIBs)

Tenants’ improvements and betterments (or TIBs) are when a renter makes changes to a property or building that will increase its value. As a commercial landlord, your lease should include a clause about these upgrades and how they become your property at the time of the update. These improvements could include anything from installing new carpet, adding fixtures, or even building an addition. Basically, this means that anything your tenant attaches to your building permanently becomes yours.
Who Covers the Expenses of Insurance?
How you go about insuring these items depends on your lease. If your tenant is responsible for maintaining the improvements, they should be insuring these areas. However, the fact that your tenant is using the areas doesn’t mean you’re necessarily off the hook for coverage. Your commercial policy should safeguard anything added to your property, but you’ll need to increase the value of your building as a whole on your policy, since your tenant just did you a favor. It would be a good idea to have your attorney review any changes made to your insurance policy.

Many potential tenants look for the TIB portion of a lease right away. If you allow your tenants to make changes that will improve their business, you can develop a long-term, mutually satisfying relationship. Increasing the value of your property and having happy tenants is a real estate investor’s dream. As with any lease section, you need to cover all of your bases, and make sure the language is clear and easy for both parties to read. Having specific details laid out up front could save you a lot of grief later on.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we […]

3 Tips for Valuing a Commercial Property

 

Many real estate investors understand the value of walking around a residential neighborhood to gauge the potential investment value of a property. However, fewer REIs place the same importance on walking a commercial property. However, if you know what to look for, you can glean some valuable insight into value of commercial real estate.
Valuing Commercial Property: Typical Vehicles and People in the Area
As you walk through the area, make note of what you see.

Do you feel safe as you walk?
What kinds of cars and trucks do you see?
Is the neighborhood demographic appropriate for the type of business you’re considering buying?

Check the alleys for signs of rodents, homeless camps and other factors that may make a property less than desirable. You can renovate a building but you can’t change its surroundings.
Ease of Ingress and Egress Has an Impact on a Commercial Property’s Value
Speaking of things you can’t change, how easy is it to access the commercial property you’re considering? Look at the traffic flow in and out of the parking lot, entryway and loading area. Would it be easy to access in a car? What about a local delivery truck or a semi with a trailer? Depending on the type of business, tight spaces and a lack of pull-through options might be a deal breaker.
Use of Neighboring Properties in Valuing a Commercial Property
Do the local businesses compliment the intended usage of the property you’re considering? For retail, it’s ideal to have complimentary, but not competing, stores nearby. For any business, you should consider whether neighboring sounds, smells or activities will impact the potential value of your property.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan […]

Investors and Developers: Could You Use Hard Money?

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.

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