Rehab Loans

When To Walk Away From A Potential Real Estate Investment

Successful real estate investors know when to walk away from a potential real estate investment. They know how to spot the signs of a bad investment. Every deal isn’t going to be worth the time, money and effort. So, here are some tips to know when to walk away from a potential real estate investment!

Make sure your income potential is immediate. Don’t invest for some “huge payout” at some indefinite date in the future.
Lack of income documentation on a rental property. If a seller is selling an existing rental property, make sure you see proof of rental rates, vacancies and property profits.
The property is in a bad neighborhood. Keep your eye on properties where the neighborhood values are expected to increase. A good property in a bad neighborhood is not a good investment.
The property is outside of the country. If you’re still looking for tips on investment properties, you likely don’t have enough experience to do well investing in international real estate.
Large upfront cash requirements. Know your budget. A killer deal means nothing if you don’t have a means to renovate the property so that you’ll see a return on your investment.

Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
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, […]

Most Common Problems Identified On A Home Inspection

Have you ever wondered what the most common problems found by home inspectors are? Most problems are relatively easy to fix. So, don’t let these be deal breakers if you find an otherwise good investment.

Faulty wiring is common, but not usually a costly problem for an electrician. Often they find open junction boxes or wires without wire nuts. Easy fixes. Water on ceilings often terrify purchasers, but if it’s caused by faulty plumbing, the repairs can be no big deal. Inspectors commonly find poor drainage causing basement leaks. That’s not always hard to fix either. Bad gutters cause a myriad of issues, but are easy to replace or repair. Foundation flaws like small cracks aren’t always a huge deal. The inspector can inform you of the severity. Poor maintenance like worn shingles or a cracked driveway are also easy to repair, so don’t despair!

Now, if your inspection finds that your roof needs replacing, you could be looking at more than seven grand. If the house is in a flood zone, you might consider just running the other way. If you find major foundation issues, it might not be worth your investment. If all of the wiring is aluminum, you’ll need to replace it. That can also cost thousands, so make sure you’re prepared for that kind of cost investment before you sign the final papers.
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, North and South Carolina metropolitan areas.

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 […]

Should You Invest In Good Carpet Padding To Flip A House?

You’ve got your eye on a potential investment property. You’re creating your budget. You want to cut some corners. Should you get cheap carpet padding?

Most investors find that a good carpet padding increases buyer interest even more than a good carpet would. Good padding can absolutely help you flip a house. Buyers assume that if you’re willing to invest in a quality padding, the home must have quality products everywhere. You can even go with a cheaper carpet if you choose a better padding. It wouldn’t even be deceptive. Quality padding can help even low grade padding last longer. The good padding can help carpet absorb the impact from traffic from below.

Plus, the feeling of nice carpet padding beneath a buyer’s feet goes a long way. It absolutely goes further than the same cost investment on a higher quality carpet. Keep in mind that residential carpet should have a minimum six-pound density rating, but many prefer an eight-pound padding. You can install up to half-inch carpet padding beneath cut pile carpet. Still, for berber carpet, you should keep it under 3/8 inch thickness.
Tip: If installing carpet padding yourself, don’t forget to cover all seams with seam tape!
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, North and South Carolina metropolitan areas.

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 […]

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    If You Don’t Have 100% Of The Funds, Don’t Start A Real Estate Project

If You Don’t Have 100% Of The Funds, Don’t Start A Real Estate Project

If you don’t have all the funds you will need for your real estate project, be that flipping a house or renovating a potential rental property, don’t take that risk. That’s a gamble that could end up with you in a really bad situation. If you want to start a real estate project, be sure to start with more debt or more funds than you think you will need. That’s right, always starts with a loan for more than what you think you will need to complete the project.

See, it’s easier to get initial funding than subsequent funding. If something comes up and you don’t have the funds to cover it, your entire project could stall, and then fall apart. You don’t want to spend countless hours and resources only to lose all of your work in the eleventh hour. It’s not unheard of for someone to get 90% finished on a real estate project and then lose everything. Why? Because they tapped out of funds. Don’t learn the hard way. Take our word for it. Never start a real estate rehab project unless you have all of the money that you will need to finish the job.

 
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, North and South Carolina metropolitan areas.

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 […]

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    Are You Sure You Want To Pay Retail Price For A New Sink From A Big Box Store?

Are You Sure You Want To Pay Retail Price For A New Sink From A Big Box Store?

Don’t pay retail price for a kitchen sink when like-new used sinks, sinks from competitively priced online specialty shops, and salvaged sinks save you bundles. Look, if you’re flipping a house, a gorgeous kitchen sink makes a real difference. That doesn’t mean you should pay full price for the sink though. You also don’t have to spend time and gas money hoping for a great find at a Habitat for Humanity store. The online market offers sink basins in remarkable shape at a serious discount.

 

Used Farmhouse Stainless Steel Sinks On Amazon

If you buy a new Kraus farmhouse stainless steel sink basin, you’ll pay between $400-$480 for a brand new, handcrafted premium 16 gauge T-304. The extra-deep basin, clean lines and apron front compliments any décor. This sink creates a dramatic kitchen focal point buyers love.  This same sink costs under $300 on Amazon used. It ships repackaged in excellent condition. The buyer won’t know you saved a bunch of money. If you flip multiple houses, one to two hundred dollars can add up to thousands saved quickly.

Vintage Sinks From Specialty Online Stores

Online specialty stores sometimes offer amazing reductions from retail prices on kitchen sinks. Some online specialty stores earn their big bucks from glorious vintage tub basins, but they slash the prices of items like kitchen sinks.

For example, Vintage Tub & Bath, offers free shipping on orders over $50. It’s been in the industry for decades, but it’s a smaller shop located in Pennsylvania. You could save hundreds on a Randolph Morris fireclay apron farmhouse sink. Sinks like these are even hotter with buyers than the gorgeous stainless steel sinks. This high quality sink would cost you several hundred dollars, but for less […]

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.

Why?

Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, 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.

Read our frequently asked questions and take […]

What is a Hard Money Rehab Loan in Atlanta?

If you’re like many homeowners, you’ve considered getting a hard money rehab loan for your Atlanta home. However, you may not know enough about hard money rehab loans to decide whether or not it’s a good idea.
What is a Hard Money Rehab Loan?
A hard money a rehab loan is cash you borrow from a lender so you can make improvements to a property. In some cases, particularly when you own your property with no encumbrances (you don’t owe any money on it), you may wish to take out an equity loan.

Paces Funding can lend you up to 50 percent of the property’s value if you choose cash out equity lending. However, it’s incredibly important that you have a solid repayment strategy in place before choosing this type of hard money loan.

A hard money rehab loan is not quite the same as cash out equity lending is.

Many investors choose to take out a hard money rehab loan in Atlanta and improve a property, then sell it at its new value.

Projects that require extensive amounts of work are a bit riskier for lenders. That means it may be more difficult to get approval for a rehab loan. However, when traditional lenders are afraid to grant rehab loans, many hard money lenders pick up the slack.
What Hard Money Lenders Consider With Rehab Loans
Because rehab loans are typically risky, hard money lenders typically consider:

How much you paid for the property originally
The upside potential of the property
The extent of the rehab
Your personal financial situation

Do You Need a Hard Money Rehab Loan in Atlanta?
If you’re looking for a hard money rehab loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact […]

Common Mistakes Real Estate Investors Make

Whether you’re a brand-new real estate investor or you’re a seasoned pro, you might make some of the most common mistakes REIs make across the country.

So what are they?
The Most Common Mistakes REIs Make
Overestimating the Value of a House
Many investors—again, this sometimes applies to those who are new to the game and those who have been in a while—make the mistake of thinking a property is worth more than it actually is worth.

Typically, the easiest solution is to get a pair of appraisers to visit the home separately. Appraisers don’t know how much the lender wants to borrow, and they don’t have a vested interest in whether or not the buyer makes the purchase.
Failing to Allocate the Right Budgets in the Right Places
When you burn through your remodeling budget before you’ve even made it to the wall-painting phase, you’re in deep trouble. You’ll still need to come up with the cash to put the right finishes in the house, market it and tie up any loose ends.
Thinking That Real Estate Investing is a “Get Rich Quick” Thing
(This one usually only applies to new investors.)

Sure, on TV it looks like buying and flipping houses is a piece of cake… but any seasoned real estate investor can tell you that it takes a ton of work. It doesn’t happen overnight, either. You’ll be waiting on other professionals’ schedules, like the plumber, the roofer and everyone else whose help you need. (Face it; nobody’s a “jack of all trades.”)
Failing With Due Diligence
Yes, you have to move quickly when there’s a great investment on the horizon.

No, you can’t afford to skimp on research.

If you don’t pay attention to every detail of the deal, figure out the market conditions […]

Choosing the Right Improvements for a Property

When you take out a hard money loan to buy an investment property, some experienced professionals will tell you that you need to choose the right improvements.

However, that seems a little bit backward.

You shouldn’t buy a property unless you already know what improvements need to be made – and whether you can reasonably make them quickly and effectively enough to turn a profit on the sale.
Choosing the Right Improvements for a Property
It’s important that you’re already aware of what improvements you could make to increase a home’s value when you buy a property – but what improvements are likely to raise a home’s value, and which typically fall flat?

Improvements that often raise a property’s value can include:

Increasing space by removing non-structural walls. This can help make the house appear larger and give it a more open floor plan, which is important to a lot of buyers.
Adding lighting. One of the most popular ways to increase a home’s appeal is to add new windows, sunscoops and lighting systems.
Eco-friendly upgrades. This can include anything from solar panels to energy-efficient appliances.
Whether you choose to add tile, hardwood or new carpet, an improvement on the floors can equate to an improvement in value.

Other common upgrades include improving kitchens and bathrooms – but you always have to be careful about over-improving… especially if you’re improving too much for the neighborhood.

Improvements that may not add value can include:

Swimming pools
Extensive landscaping
High-end upgrades (especially if you’re going too high-end)
Wall-to-wall carpeting

Are You Investing in Property in Atlanta?
If you need a hard money loan to fix and flip a property in Atlanta or its suburbs, we can help.

Call us at 404-814-1644 or get in touch with us online if you have questions, or apply […]

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    New to Real Estate Investing? Here’s What You Need to Know About Funding.

New to Real Estate Investing? Here’s What You Need to Know About Funding.

If you’re new to real estate investing, you probably already know that some deals are too good to pass up – but that banks take weeks or months to approve loans, and even then, they may not give you the most favorable terms to make the deal worthwhile.

Here’s what most new real estate investors learn pretty quickly: a hard money loan is nearly always the only type of financing a new investor can get without having much capital stashed away.
Private Financing for New Investors
Because banks take so long, and because they won’t typically lend you money based on the after-repair value of a house, it’s typically best to go through a private lender. It’s important that you know private lending is different from traditional bank lending, though – particularly on these points:

Your credit score matters in hard money, but not as much as it will with a traditional loan.
Even if banks have turned you down, private financing is usually still an option.
Private financing depends on the assets you have to guarantee your repayment. Hard money is a form of asset-based lending.
The process is typically quick and easy. A hard money lender can finance you quickly enough to let you jump on great deals – the process often takes a week to 10 days to complete, but it can be wrapped up sooner.

Is Private Financing Right for You?
Ask yourself:

Will a bank or traditional lender approve me for this type of loan?
How quickly can a bank approve my loan application?
Would the bank or traditional lender give me enough money to cover my expenses when it comes to rehabbing the house?

For some people, private financing is the only option. If that might be the case in your […]

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