Albany, Georgia, is a city in south Georgia, and the eighth largest city in the state. It is a great alternative for real estate investors seeking to get away from the traffic around Atlanta but still seeking to invest in the state of Georgia. It is home to many veterans and is a city with a popular City Center.
Recently, prices in rent and median listing prices have been rapidly increasing in Albany, and these rising home values are making Albany a seller’s market rather than a buyer’s market.
As a real estate investor in Albany, hard money loans could be your best choice. Hard money loans are loans that can be approved very quickly since they do not rely on the credit of the borrower. Instead, hard money loans can provide you quick, hard cash since hard money lenders rely on the location and value of the property rather than the borrower’s credit (although most hard money lenders still have a minimum credit score of 600 to 620).
Hard money loans are often used for fix and flips, construction projects, long-term rentals, and repairs for foreclosed or distressed homes. In real estate, they are often used to stave off foreclosures and for short turnarounds on home. They are rarely used for traditional homeowning purposes like mortgages from banks.
If a borrower defaults on a hard money loan, the lender takes control of the property. The property is the collateral for the loan. The hard money lender thinks about whether the property can pay back the loan if the borrower defaults.
In real estate investing, time is often money, especially in a market as competitive as Alpharetta. With fast approval periods of only a couple days, a real estate investor can generate cash faster than competitors and secure the property of their dreams.
But hard money loans also come with their risks. Compared to traditional loans, they have low LTV ratios, meaning the borrower has to pay a greater proportion of the downpayment. They also have higher interest rates and short repayment periods, so a borrower needs to have a good strategy for how they can pay off a property quickly.
It is important to be extremely selective of which hard money lender you choose, particularly as a new investor. Many hard money lenders require a successful real estate investing track record, which could be a major barrier for some investors. However, others also put on extra fees like origination fees and closing costs.
At Hard Money Lenders IO, we have you covered — we have done the research to pair you with the best hard money lenders in Alpharetta that can get you the best rates, fastest approval speeds, and best LTV ratios.