Private Lending

Things To Look Out For When Shopping For Hard Money Lenders

If you’re shopping for a Hard Money lender, here are some things to look out for. You want a real hard money lender, like Paces Funding. You don’t want a broker or a scam, right? So, take our advice and avoid a bunch of hassles. If you’re purchasing property in Atlanta, Nashville, Florida or the North and South Carolina metropolitan areas, just stick with Paces Funding. But if you’re outside our service area, use these tips to avoid fake hard money lenders.

Watch out for online directories. These aren’t actually hard money lenders. They’re usually just websites that will sell your information to brokers. Be careful of lenders who use non-corporate emails like Gmail or AOL. Make sure your potential hard money lender is a real person by checking for a working number, a valid address, and a functional website. If they ask you to fill out a logo that doesn’t provide traditional corporate information on it, be careful. Likewise, if they ask you to fill out multiple applications that are very similar, something might be fishy.

If a supposed hard money lender needs excessive time to respond back to you, they probably aren’t legitimate. Real hard money lenders know that a quick turn around time from application until financing is crucial. You might be working with a scam artist or just a broker who is trying to set you up with a genuine lender, with the intent to take a cut themselves. You don’t need scam artists or middle men. Legitimate hard money lenders exists and are perfect for many investment real estate financing situations.
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 […]

Fulton County Tax Foreclosure Sales (and How to Find Them)

In the state of Georgia, it’s legal for the government to seize property, such as homes and land, for the nonpayment of taxes.

According to the Georgia Department of Law, a homeowner’s obligation to pay property taxes is backed by the property itself.

If a homeowner fails to pay, the county tax commissioner can sell the home to raise the amount due back in taxes. Often these homes sell for exceptionally low prices—but how does the whole process work?
How Does a Property Get Seized?
When a homeowner’s property taxes are past due, the tax collector can proceed through a non-judicial tax sale or a judicial tax sale. (The former doesn’t go to court, but the latter does.)
Non-Judicial Tax Sales in Fulton County
After the tax commissioner warns the owner and the payment deadline passes, the commissioner turns the case over to the sheriff’s department, issuing a writ of execution. The writ orders the sheriff to sell the property at auction to the highest bidder in what’s known as a sheriff’s levy and sale.

The sheriff must send out written notice and publish an official Notice of Sheriff’s Sale in the Daily Report.
Judicial Tax Sales in Fulton County
A judicial tax foreclosure sale, which is less common than a non-judicial tax sale is, requires the tax commissioner to go to court. The tax collector can take action exactly one year after the property taxes are due.

You’ll find properties up for judicial tax for closure sales in the Daily Report, as well.
Where to Find Tax Sales in Fulton County
Many REIs use the Daily Report’s online “Public Notices” section to find information on affordable properties that may actually be gold mines.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a […]

Are Co-Working Spaces Worth the Investment?

More and more, people are going into business for themselves. Those tired of “working for the man” or craving a better work-life balance are calling it quits on punching the clock.

Trends in Atlanta are also showing a demand for workspaces where people can come and go at their leisure—especially when working from home is not always ideal.

More often than not, freelancers and start-up companies are not in a position to rent costly office spaces, and above all, they are not willing to make a long-term commercial lease at the start. So, where is all this business being conducted?

Co-working spaces.

Co-working spaces are shared office workspaces that offer a complete, low-cost solution to telecommuters and small businesses. Even large corporations are catching on to the concept when planning for contract workers or special projects.

So how does it work?

If you provide the desks, internet, telephones and coffee—they will come.

Most co-working spaces are supported by (and make money from) memberships. Members comprise people who are looking for a space to work on a daily, weekly, monthly or quarterly basis. In addition, owners of these shared spaces make even more money by renting out conference rooms for meetings or events.

People are finding that they are much more productive when they have somewhere to go and people to connect with. Co-working spaces allow members to collaborate on ideas with people from all walks of life and all areas of business.

Office politics are almost nonexistent since everyone works for themselves. Also, having a professional place to hold a business meeting is an attraction in itself, as some people aren’t keen on the idea of doing business in a living room or coffee shop. (Sometimes those screaming kids or open mic sessions will kill a […]

3 Indispensable Tools for Real Estate Investors

If you’re like most real estate investors, you understand that the ability to quickly and easily evaluate a property—and its potential value—is key to deciding whether to purchase it. This first step is critical in making the right investment decision. Using the right tools to accurately value a property can save you a great deal of time and effort in making your determination.
REI Tool #1: Google Maps, Earth and Street View
Virtually everyone these days relies on Google maps for navigation. Before you even drive past a property, have a look at it—and the surrounding area—using Google Earth. Street view will give you another taste of the way a property looks. In some cases, you may be able to switch between a newer and older view, as well. This can give you great information, literally at your fingertips.

Additionally, use Google Maps to get a feel for the neighborhood retail and restaurant options. Homes located near a Trader Joes, Whole Foods and other popular retailers often increase in value more quickly than comparable homes in the same city. The same is true for homes in highly “walkable” areas or near popular parks.
REI Tool #2: Trustworthy Comparable Programs
All the major residential real estate websites offer AVM (automated valuation methods) values for any home you may select. While each has their weaknesses and can offer misleading figures, they’re all worth a glance. The county assessor’s office is still your best source for comparables information, but it’s hard to beat the likes of Zillow and Trulia for instant gratification. Just do your homework and take these values with a grain of salt.
REI Tool #3: Your Own Eyes
Technology can help you rule out properties that aren’t worth considering, but nothing […]

Private Money Lenders vs. Hard Money Lenders

What’s the difference between a private money lender and a hard money lender?

The short answer is that there are some differences—and if you’re a real estate investor, you’ve probably heard the two terms used interchangeably.
Differences Between Private Money Lenders and Hard Money Lenders
A hard money lender such as Paces Funding is able to provide capital quickly. Private lenders are able to do so, too, but there are differences that may make all the difference in the world.

Hard Money Lenders

Hard money lenders typically have lending criteria. For example, Paces Funding’s loan criteria for residential properties include:

A 6- to 12-month term
No prepayment penalties
Investments and cash-out refinances only
Loan-to-value ratio of up to 65 percent of the after-repaired value of the collateral
Rates vary depending upon collateral and loan structure
Borrower needs to contribute 15 percent of the project cost
Loan fees are typically 4 to 5 percent of the loan amount
Loan sizes range between $25,000 and $3 million
Collateral is the first lien mortgage on the real estate the loan is going toward

Private lenders are different in that the terms can vary based on each transaction, and the results are entirely based on whether you and the private lender can agree.

Credit scores do matter when you’re taking out a hard money loan, but they don’t matter as much as they would with bank financing; that’s because hard money lenders are able to look at the “big picture” and lend money on the perceived after-repair value of a house.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out […]


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