Purchasing and renting out homes is an effective way to maintain a substantial flow of income. However, getting to the point of owning a home is a hectic process that requires alternative financing options.
On average, every adult American has a debt of close to $38,000. Banks are using this credit record to deny people real estate loans. But do you know that hard money lenders offer reliable alternative financing options? Below are some of the benefits of hard money loans.
Minimal Requirements
Borrowing to finance a real estate project is always a noble idea. Unfortunately, finding a suitable lender is a major challenge. Even when there are willing financiers, the terms and conditions are unbearable to the average American.
Conventional banks are known for their long list of requirements which must be met for them to approve loans. Fortunately, a new and more consumer-friendly financing option has emerged in Atlanta.
Lenders in Atlanta are offering bad credit loans to consumers in the construction sector. The terms and conditions are lenient because are meant to promote local investors. Unlike traditional banks, hard money lenders only require you to prove that you meet a minimum property equity share of 25%.
Regardless of your credit history, meeting the minimum property equity share puts you in an excellent position to access more funds to finance your project.
Fast Approval
Hard money loans have a quick approval rate. In typical cases, the approval and disbursement of the loan do not go beyond the fourth day. As long as the minimal requirements are met, Atlanta hard money lenders will process and release the requested funds in record time.
The quick approvals of construction loans mean that your real estate investment will never stall due to lack of resources. Unlike conventional banks, a hard money lender guarantees a huge amount of money to finance your projects.
Additionally, the money given is directly proportional to the project being financed. Hard money lenders in Georgia are, therefore, a critical part of your real estate dream and investment.
Lenient Payment Terms
Most investors are afraid of construction loans due to their harsh payment terms. When it comes to hard money lenders, the consumer has more power in deciding how the loan should be settled.
In other cases, it happens that the funded investment matures faster than expected. In such instances, lenders offer flexible terms that allow you to clear the loan at a discounted interest rate.
Easy Way to Win Coveted Investments
The present-day business environment is not about the resources at your disposal but your ability to take advantage of available opportunities. Unfortunately, most of the opportunities come when funds have been channeled to other projects.
Hard money lenders ensure that you don’t miss out on any deal because of financial constraints. With the high approval rates and sustainability, private lending gives you a chance to grab every emerging opportunity. Hard money lenders Atlanta are, therefore, lifetime partners when it comes to real estate development.
Flexible and Manageable Loans
The finance sector plays a critical role in the overall funding of the real estate industry. One unique thing about private lending as a financing option is its flexibility. Unlike conventional banks which cannot offer multiple loans to the same person, every loan here is independent.
Each real estate investment stands on its own and stands a good chance to obtain a loan. The independent nature of hard money makes it easy to access multiple loans with different properties.
At the same time, these lenders are known for their consumer-friendly payment options. In case the project did not turn out as expected, the repayment terms can be renegotiated, and the payment period extended.
Final Word
Unlike conventional banks, hard money lenders have a more personal relationship with their customers. Additionally, they give honest reviews on particular projects and offer recommendations where need be. For more information on Atlanta hard money lenders, contact us today.