Why would someone use a hard money loan?
Thousands of people in the Atlanta area take out hard money loans each month – but thousands more aren’t quite sure what a hard money loan is.
Why Use a Hard Money Loan?
Some people choose to use hard money loans to borrow funds to purchase homes and make renovations. Let’s face it: remodeling and renovating a can be necessary… but it isn’t cheap. Most people don’t have that type of discretionary income just sitting in the bank.
Many investors also choose to use hard money loans to make initial property purchases on homes that need rehabilitation.
Hard money loans can be extremely helpful when someone is unable to secure traditional financing (that’s often the case when a traditional lender won’t assume the risks inherent in house-flipping).
It’s important to remember that these loans are generally for short-term purposes. For this reason, many real estate investors use a hard money loan to finance the original purpose and the rehabilitation of a home; then, once the home is fixed up and appraises at what it’s worth, they’ll look for more traditional lending.
Some investors choose to purchase homes, renovate them and rent them out. In cases such as these, borrowers often switch to more traditional loan types.
Hard money lenders use different terms than traditional lenders do. That’s why it’s generally easier for people to use them only in the short-term.
Do You Need a Hard Money Loan in Atlanta?
If you’ve figured out why using a hard money loan may be a good choice for you, fill out our simple online loan application. If you still have questions, you can always call us at 404-814-1644 or get in touch with us online. We’ll be happy to help you get the money you need, when you need it.