There is a lot of money to be earned from flipping houses. However, buying a house and flipping it may cost you more than you expected. Hard money loans for real estate have been a savior for house flippers and real estate investors/developers.
Private lenders offer bridge loans/hard money loans for real estate to those who want to flip or develop the property and sell for a profit. To qualify for a bridge loan, you must prove to the lenders that you deserve it. The reason is that private lenders use the property’s value to determine your real estate loan amount.
What is the Cost of Flipping a House?
The workload and expenses are affected by the condition of the property before renovation. If you have big projects, then hiring a contractor will be necessary. Some standard expenses include workforce, utilities, marketing, and insurance. It is upon you to cater for insurance costs from the moment you purchase the house to when you sell it.
After the renovation process, you will also need to cover marketing costs or hire a realtor to help sell the house fast. If you want to invest/develop real estate, find the best hard money lenders in your area.
Standard Requirements for a Hard Money Loan?
The property value is used as collateral when applying for a hard money loan. The terms of the loan agreement and your concerns will also help you choose a hard money lender.
Some common requirements lenders check include:
- Your physical/geographic location, as most lenders operate locally or within certain regions
- Your flip and sell rate to measure how fast you repay loans after flipping them
- Insurance and relevant property documentation
- The type of property you are developing
- The workforce required to flip the house
Why Get a Hard Money Loan for Real Estate?
There are many benefits of fix and flip loans. There are upsides to getting hard money loans for real estate from Atlanta private lending. Bridge loans take less time to process, and even if you have bad credit, you may be eligible. Hard money loans are useful when your income and credit do not meet the criteria of banks or traditional lenders.
Next, if you need funds to fix and flip expenses and have no options, a bridge loan might help. Atlanta hard money lenders will work with you to get your fix and flip loan.
How do Atlanta Hard Money Lenders Work?
Just like traditional loans, hard money loans for real estate need underwriting. The major difference is that they usually take less time. It takes a few days to get your loan approved mainly because most private lenders are more interested in the property’s value rather than your income or personal finances.
After submitting the info needed, you will be pre-approved, after which the property will be appraised. If you have the insurance and documentation, getting a loan will be straightforward. When you get an ideal private lender, you can build a long-term network. Call Hard Money Georgia today for fix and flip loans.