Atlanta is the biggest city in Georgia, and one of the best places to invest in real estate in the country. Median home prices within Atlanta are increasing, and Atlanta is known for being a very transient city. Many people are often moving into the city and in need of housing, and it is especially an attractive real estate market for renting property in 2022.
According to Jeff Rohde at Roofstock, over 50% of households in the Atlanta metropolitan area would rather rent than own. As a city in the South, Atlanta has a great cost of living, strong economy, and is very welcoming to newcomers. With home prices that are not excessively expensive, Atlanta’s population growth has been booming as more and more jobs come into the Atlanta area.
As the home to almost 500,000 people within the city, Atlanta is not only the biggest city in Georgia but the 38th biggest city in the country.
Atlanta is a great city to invest in real estate and is known to be a very strong seller’s market. Right now, demand for homes is rapidly outpacing supply in Atlanta, and in 2021, the average sale time for a home was 47 days. 65% of homes were sold in under 30 days, which means getting an offer for competitive homes in Atlanta is difficult.
To get fast, hard cash, hard money loans might be the answer. Hard money loans can be approved very quickly due to being based on the projected value of the property after repairs rather than the credit of the borrower. While most mortgages from banks can take a month or longer to be approved, hard money loans can be approved within a couple of days.
Hard money loans are mostly used to fund long-term rentals, repairs for distressed properties, fix and flips, and more. Since they don’t factor in credit when determining the terms of the loan (although most hard money lenders still require a minimum credit score of 600 to 620), hard money loans use the property as collateral. If a borrower defaults on a hard money loan, the lender collects the property, and while determining the terms of a hard money loan, each lender tries to determine whether the hard money loan can pay off itself.
This is the reason why hard money loans also come with significant risks, because the lender is incurring more risks in the process. Hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional loans from the bank. On average, a hard money loan has interest rates ranging from 8–15%, and lower LTV ratios mean that compared to traditional mortgages, investors who use hard money loans have to put down a greater proportion of the home payment as a down payment.
At Hard Money Lenders IO, we have you covered in finding the best hard money loan in Atlanta. We can help you find the best hard money lenders that are trustworthy, reputable, and partners in your real estate investing journey.