Alpharetta is a suburb north of Atlanta, a suburb that is a superb real estate market. Alpharetta has terrific schools and great rentals through condos and single-family homes. It is a Southern suburb with a terrific quality of life, and many people who live in Alpharetta commute back and forth from Atlanta.
To become a real estate investor in Alpharetta, hard money loans many be the best option for you. Hard money loans are fast loans that aren’t burdened by long approval periods, like traditional loans from banks. To invest in a lucrative market like Alpharetta, hard money loans can be used to fund fix and flips, acquire quick financing for a construction project or distressed property, or fund a long-term rental property.
Hard money loans do not have the constraints of traditional loans that need to depend on comprehensive loan applications and the borrowing history of the borrower. They do not depend on credit scores even though the majority of hard money lenders in Alpharetta still require a minimum credit score of 600 to 620. For borrowers with a poor credit history, real estate investing may be seen as inaccessible, but hard money loans are a last resort, alternative option.
The biggest advantage of hard money loans is they can be approved very quickly. Since they rely on the property as collateral, if a borrower defaults on a hard money loan, the lender collects the property. This can be advantageous to the lender, and skips the whole lengthy process of foreclosure.
A risk is hard money loans can be expensive. They often have low LTV ratios, high interest rates of 8–15%, and short repayment periods of only a year to three years maximum. A low LTV ratio means a borrower has to pay a much bigger portion of the downpayment than they do for traditional mortgages from banks.
Also, not every hard money lender is trustworthy. Some will tack on extra fees to take advantage of new investors, like origination fees or closing costs. It is more difficult as a new real estate investor anyway since many hard money lenders require a successful track record.
Lenders do not consider credit, but they do evaluate the location of a property as well as the value of the property. They also think about whether the property can pay back the loan itself if the borrower defaults on the property.
This is why it’s important to be selective about which hard money lender you choose. In Alpharetta, you have to choose the most trustworthy and reputable lenders for your real estate investing goals.
Here at Hard Money Lenders IO, we have you covered in closing your transaction quickly. Here are the best hard money lenders in Alpharetta.
