WHAT IS A HARD MONEY LOAN?
Let’s start with the basics: What is a hard money loan? Also known as bridge loans, flip loans or rehab loans, this type of financing helps real estate investors buy and repair investment properties.
Hard money loans are different from the loans offered by banks, credit unions, and mortgage lenders. One big difference? Hard money loans don’t have to conform to standard underwriting requirements. That means real estate investors can use hard money lending to not only purchase distressed properties but to rehab and repair them. Without the rigid underwriting requirements, hard money loans can typically close quicker than other forms of funding, which is crucial when it comes to securing a competitive deal.
Another difference between hard money and conventional loans? Hard money loan amounts are based on a property’s potential, after-repair value, rather than a property’s current, “as-is” value. That means working with a hard money lender allows investors to finance properties as if they were paying cash.
Taken together, these characteristics make hard money loans a tool investors payday loans in Gainesboro can use to close deals quickly and optimize leverage.
Who Can Qualify for a Hard Money Loan in Georgia?
Hard money loans offer an alternative to conventional loans for a range of buyers. They’re especially helpful for “fix-and-flippers,” or real estate investors who buy distressed properties, then repair and rehab for sale or to rent.
Flippers sometimes need to make real estate investment decisions on a dime. We understand the need for speed; that’s why we offer such a fast approval process. Often, our hard money loans are closed and funded in just 7 business days!
But not all real estate investors want to fix and flip. Many wish to purchase distressed properties to repair and rent to tenants. Rental loans help landlords maximize their investment opportunities through a range of rehab, refinance, and purchase-only options.
Unlike conventional or bank loans – which focus on individual credit-worthiness – hard money loan underwriting is based largely on the future value of the asset the investor is purchasing. Our loans are available to real estate investors that meet certain credit and liquidity requirements, rather than first-time homebuyers or buyers who plan to live in the property they wish to purchase.
WHERE DO WE OFFER HARD MONEY LOANS?
We work with real estate investors to provide hard money loans in a wide range of locations across the U.S.
- District of Columbia
WHAT ARE THE BENEFITS OF HARD MONEY LOANS?
Why do so many borrowers choose hard money loans over traditional loans? As investors know, time is money in real estate. When funds are needed within a short period, banks and mortgage lenders simply can’t deliver on time.
In contrast, we offer a quick, easy process that leads to closed, funded loans in as little as seven days. Hard money loans are an ideal choice for real estate investors who need fast access to funds.
Bridge loans offer flexibility, as well. Banks, credit unions, and other traditional lenders have rigid underwriting requirements. Many won’t fund distressed property loans or offer funding for rehab and repair. Bridge loans are designed so investors can purchase distressed properties, then rehab them to increase their value through sale or renting.
Best of all, hard money loans are based on a property’s future value, not a current, “as-is” condition. This means more money to work with… and more leverage.
STRATEGIES FOR MAKING THE MOST OF HARD MONEY LOANS
Speaking of leverage, how can an investor make the most of their hard money loan? When an investor wants to purchase a fix and flip, they may choose to use their own money to do so. In most cases, this means draining an account, then waiting to recoup those costs until the repairs are complete and the property is sold or rented.
In contrast, taking out a hard money loan means less out-of-pocket cost. The investor can use the bridge funding to purchase and repair the property without draining their account. That leaves their own funds available for other investment projects.
WHAT KIND OF PROPERTIES CAN YOU GET A HARD MONEY LOAN FOR IN Georgia?
We provide hard money loans for landlords, flippers, and brokers. We fund distressed investment properties, including detached single-family residential properties with one to four units.