If you’re like most people, you’ve heard of Atlanta hard money loans… but what are they, and why do people use them?
What Are Hard Money Loans?
A hard money loan is money given to investors who need fast cash to purchase and renovate a property. While credit history is important when it comes to a hard money loan, what’s more important is the value of the property.
Typical Uses of Hard Money Loans in Atlanta
While many people apply for hard money loans in Atlanta and the surrounding areas so they can flip homes, there are plenty of other uses for the money, as well.
Typically, hard money loans are used for:
- Bankruptcy bailouts
- Building acquisition and rehab
- Emergency “cash-out” for miscellaneous needs
- Foreclosure bailouts
- Land acquisition and development
- Self-employed borrowers
- Short-term financing related to real estate
- Transactions that traditional lenders can’t perform
Hard Money Loans at Work
Let’s say you’re an investor and you’re bidding on a foreclosed property that’s valued at $150,000. You won the bid at $75,000, which is a great deal – but you could suddenly be facing a few problems. Maybe your credit isn’t perfect, or maybe the bank that’s foreclosing on the home needs you to close in the next couple of weeks. How will you get conventional financing during that time?
You could also be short on cash. Maybe you only have enough for the initial deposit, which will leave you scrambling for money to close the deal.
That’s where a hard money loan would be useful. You could borrow based on the value of the home, even with less-than-perfect credit, and get the money you need to go through with your investment.
Thinking About Borrowing Through a Hard Money Loan in Atlanta?
Call us at 404-814-1644 if you have questions about our hard money lending process or if you’d like to discuss your options. You can also contact us online and we’ll get back to you right away.