As a real estate investor, you already know that conventional financing may not work well for you if you are purchasing a home that needs a little TLC. You’re probably also familiar with hard money loans, and you know where to get the best deals on foreclosures.
But if you’re just getting your feet wet in the real estate investment pool, you need to know the truth about conventional financing and investment properties.
Conventional Financing: Why it Might Not Be Right for Investment Properties
Typically, when you find an investment property, you need to act quickly. Because conventional financing generally takes weeks (or months) to go through, it may not be the best idea for your investment.
In addition to the length of time it takes to apply for conventional financing, in most cases, you’ll need to put down a sizable down payment. Further, to get the best interest rates, you’ll need a great credit score.
In many cases, that means a hard money loan may be your best option.
Advantages of Hard Money Loans
While hard money loans aren’t the right solution for everything, they are typically a great source of financing when you’re buying an investment property in Atlanta.
Some of the biggest advantages of hard money loans include:
- Fast approval times
- The ability to get a high percentage of the after-repaired value
- Different standards as far as credit requirements
- Favorable terms as far as interest
- Large amounts available
If you need a hard money loan in Atlanta, we may be able to help you. Check out our loan criteria and get answers to all your questions about hard money loans by calling us at 404-814-1644 or contacting us online.