How to Choose a Hard Money Lender in Georgia

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TV shows about flipping houses don’t show how they got the money to do home improvements. They need a lot of money right away. Even if you’re a builder or a real estate investor, the same is true. Sometimes you need money quickly to get the deal done.

Sometimes you have a lot of cash but not the best credit. That means it’s time to look into obtaining a loan from hard money lenders in Georgia.

Before you choose the first one you find online, you really need to do your homework. If you’re not careful, you could end up risking more than you bargained for.

To keep you safe, we’re sharing with you how to choose the right hard money lenders in Georgia.

Determine Your Hard Money Needs

Before you choose which of the hard money lenders in Georgia to help you, figure out what your needs are.

Don’t forget that you’ll need to provide some information to the lender, like the address of the property. You’ll also need to share with them critical deadlines like the closing date, the purchase price, and the renovation budget.

They’ll also need you to have estimated the post-renovation asking price.

People who are flipping a house will have different needs than a real estate investor. So find a hard money lender who specializes in your type of loan.

Make Sure They Specialize in Hard Money Loans

Selecting the right hard money lenders in Georgia will require you to do a bit of research.

There are a few differences between a hard money loan and a bank loan. While a hard money loan process is much quicker, there are a lot of complex servicing and compliance requirements for this type of loan.

When you choose a company who specializes in these loans, they’ll understand how to best structure the loans so that all parties involved will experience the best outcome.

The right one will specialize in your needs. Most people looking to obtain a hard money loan need money quickly because of a fix and flip or because they’re a real estate investor.

Or they’re looking for a land loan or construction loan. Others need money quickly because of credit issues.

You Want to Work with Hard Money Lenders in Georgia Who are Trustworthy

Trust is a huge factor when working with hard money lenders in Georgia. If at any point, you no longer feel you can trust the person you’re working with, walk away.

People don’t do business with businesses, they do business with people. Make sure the person is answering all your questions in a way you can easily understand them.

If the lender seems angry when you ask questions or is evasive, walk away. If they don’t respond to e-mails or phone calls in a timely manner, walk away.

You deserve to work with the best. There’s a lot of money on the line and you need to understand the process fully.

Check Out Their Testimonials and Reviews

Go online to Google and Yelp to see what others are saying about their experience with hard money lenders in Georgia. Positive reviews and testimonials will speak volumes.

Don’t forget to check out their website as well. It should be clean, uncluttered, and easy to navigate. If they provide testimonials on their site, that’s even better.

You’ll also want to check out their LinkedIn profile. Check to make sure their profile has been filled in and the information is consistent with their website. Check to see if any reviews or testimonials have been left there.

But don’t stop your research there. Go one step further to check if any complaints have been filed against their Real Estate Broker License.

Make Sure All Aspects of the Deal are Transparent

Before signing anything, you should understand all the terms of the hard money loan. You’re paying extra money upfront for a reason. You want to be assured that the hard money lenders in Georgia are paying you the loan as quickly as possible.

Make sure it’s in writing when the money from the lender becomes available.

Also, unlike conventional methods of lending, hard money lenders use the property as collateral for the loan. But the collateral is determined as if the property were sold today.

Be aware that most hard money lenders won’t lend more than 70% of the homes current value. Banks, however, sometimes lend as much as 80% and certain government-backed loans even exceed 90%.

Hard money lenders determine the amount of the loan based on asset value and the loan to value ratio.

It’s up to you to determine which kind of loan will work best for your needs.

The Terms Should be Agreeable to All Parties Involved

Hard money lenders in Georgia will differ from one another. Choose the company you feel can offer you and all other parties the best deal.

One way to do that is by choosing a company who can offer you a great deal on interest rates. Commonly, interest rates for a hard money lender will range between 10-12%.

There should be no upfront fees.

Why You Should Choose Us

Realty Resources Corporation has been in business since 1976. Our team is comprised of real estate brokers and direct lenders.

We’ve closed thousands of loans over the years. We can also work with you on any type of property located in Georgia.

We also provide more than hard money loans to our clients.

Don’t wait. Get started today and we’ll help you get the right type of loan you need.