Augusta is the third biggest city in Georgia, and is a city on the central-eastern border of the state. It has a very warm climate and is famously home to the Master’s Tournament every year, one of the four major championships in professional golf. Right now, Augusta is home to an economy revolving around biotechnology and medicine.
Many Americans retiring are drawn to Augusta due to a low cost of living and superb weather. Augusta is listed by Jeff Rohde at Roofstock as the “best kept secret” in the South. Between 2010 and 2011, the population of the area grew by 8.2%, and unemployment in the city remains low.
Right now, Augusta is a seller’s market where demand for homes is outpacing supply in the area.
In a real estate market as competitive as Augusta, hard money loans might be the best possible tool at your disposal. Hard money loans are predominantly used for long-term rentals, construction projects, fix and flips, and repairs of distressed properties like foreclosures.
They are based on the value of the property after repairs. Augusta is a competitive market, so hard money loans are particularly advantageous for real estate investing in Augusta. They can close faster than traditional loans because hard money loans are more of an unregulated field than traditional loans. While hard money loans can be approved within a couple of days, traditional mortgage loans take at least a month at times to be approved.
The rates of a hard money loan are determined based on the value of the property, which means the borrower’s credit score does not factor into the hard money loan. While most hard money lenders still require minimum credit scores of 600 to 620, hard money loans are advantageous for borrowers without a great credit score. If a borrower defaults on a hard money loan, the hard money lender collects the property, which means the lender takes on significantly more risk than a bank and does not have to undergo costly and lengthy foreclosure proceedings.
However, it’s important to not just trust any hard money lender. Many hard money lenders might try to take advantage of new investors and tack on extra fees like origination fees or closing costs. It’s important to be incredibly selective in choosing the hard money lender that can get you the best rates possible.
Hard money loans, compared to traditional loans, have higher interest rates, lower LTV ratios, and lower repayment periods than loans from the bank. This means they need to be paid off quicker and finance less of the cost of the home than traditional loans.
At Hard Money Lenders IO, we have found the best hard money lenders in Augusta that can help you invest in the property of your dreams.