You did it! You’ve found the perfect real estate investment property. You know that you can buy this property, fix it up, and flip it fast.
But you’ve got a few problems.
Your credit score isn’t very good. Plus, you need to move fast to get this property or it will go out from under you. Banks need lots of paperwork to do real estate loans.
But there’s good news. The bank is not the only option to get a loan. Consider getting a hard money loan from an investor.
In this article, we’ll take a look at what hard money loans are and how to find hard money lenders in Georgia.
What is a Hard Money Loan?
Hard money is the term used to describe loans that are collateral based. Meaning they rely on the strength of the property you’ll use to secure them. These types of loans come from investors, not banks.
A typical bank loan has a lot of requirements. First, you’ve got to have good credit to get a bank loan. Good credit is a plus for getting a hard money loan, it’s not a necessity.
Banks also need lots of paperwork. You’ll provide business and personal financials, and they’ll need to see that you can pay the money back. Plus, they need detailed valuations, like appraisals, that take weeks to process.
A hard money loan has simpler rules for qualification. The lender isn’t so concerned with past credit issues. As long as you’ve got the capital to make interest payments.
And you need equity in the property. That’s the lender’s biggest concern: is the property worth enough to cover the loan in case of default? A simple loan to value (LTV) calculation tells you whether you qualify.
How to Find Hard Money Lenders in Georgia
Google is the ultimate guide in finding hard money lenders in Georgia. Make sure you’ve got your researcher’s cap on. You want to do plenty of research on the companies you consider.
Read customer testimonials. And do a thorough internet search for any unsatisfactory news about them.
Also, reach out to the local real estate market. Local realtors and brokers should have some good contacts for reasonable hard money lenders.
What to Expect with a Reputable Lender
Now that you’ve narrowed down your search, it’s time to get in touch with them and see what they’re like. A strong lender should have a good reputation in the real estate community.
Although credit is not a huge factor in this type of lending, a good lender still has credit requirements. You want someone who is willing to look into possible issues versus a lender that doesn’t do any due diligence. It shows good business character.
A reputable hard money lender should have references. Get their reference list and call the references. Also, do quick internet searches on the references.
You want to make sure the references are positive and that they are also respected in the business community.
We’ll Help You Get the Hard Money You Need
The goal of the hard money game is to get quick, no-frills financing. And to find good hard money lenders in Georgia, do your research.
Check around with local realtors. Google search to check their background and customer reviews.
And when you find a lender, make sure they’re practicing sound business practices. This helps weed out the shadier prospects.
At Hard Money Georgia, we’re here to help you get the fast money you need for real estate investments. If you’re interested in learning about the hard money options we offer, click here.
Don’t let that investment slip through your fingers. Call us today!