Athens is the famous home to the University of Georgia. Athens is also the best real estate market in Georgia, and home values have been rapidly increasing within the city. Athens is one hour away from Atlanta but as a college town, Athens is also known for being one of the fastest-growing areas in the country.
Based on metrics like ratio of rent, sale price, vacancy rate, and being home to the University of Georgia, Athens is a terrific rental market with great affordability. It is often rated as one of the best places to live in Georgia with a low cost of living compared to the national norm. It’s known for being one of the best college football college towns in the country, as well as one of the best places to retire.
To fund long-term rentals, fix and flips, distressed properties and construction projects, hard money loans might be one of the best options for real estate investing in Athens. Athens is a seller’s market, which means prices are higher than listing prices and homes sell very fast.
In 2021, Athens had an average sale time of 20 days, so the speed of approval is essential to buying a property. Unlike traditional loans, hard money loans can be approved in a matter of days since the field is less regulated than getting a mortgage from a bank. They are flexible and transparent loans that are based on the property rather than the borrowing history of the borrower. In hard money lending, time is often money, especially in a real estate market as competitve as Athens.
This means investors suffering from low credit can qualify for hard money loans. While most hard money loans still require a minimum credit score of 600 to 620, the projected value of the property is more important for hard money lenders. If a borrower defaults on a hard money loan, the lender collects the property, so a hard money lender often sees if a property can pay off the hard money loan.
However, it’s important to not just trust any hard money lender. Hard money lenders have, on average, higher interest rates, lower repayment periods, and lower LTV ratios than traditional mortgage loans because of the risk the lender takes on in collecting the property. Hard money loans may require a higher proportion of the home to be paid for as a downpayment as a result. Hard money loans can also be risky because of extra fees many hard money lenders use to take advantage of new investors.
At Hard Money Lenders IO, we have you covered. We have a directory of the best hard money lenders in Athens for you to secure the property of your dreams.