Columbus is the second biggest city in Georgia. It is on the western border of Georgia and eastern border of Alabama, and combined with Auburn and Opelika to make the Columbus-Auburn-Opelika metropolitan area. Columbus is currently in a transition period for real estate investing because of a higher unemployment rate than usual and a decline in home values.
However, the market is showing signs of a revival once foreclosed property is off the market. According to Than Merrill at Fortune Builders, Columbus could soon be seen as one of the best places to live in the South, which was its previous reputation.
Right now, Columbus is a buyer’s market. This means houses are staying on the market longer than usual and houses are selling for lower than the listing price. It means the supply of homes is greater than demand.
Hard money loans might be one of the best ways to invest in real estate in Columbus. Hard money loans are used to pay for distressed properties, fix and flips, and long-term rentals.
They can bypass low credit scores, which can be a barrier for borrowers. Hard money lenders may require minimum credit scores of 600 to 620, but they give loan terms based on the projected value of the property after repairs. Hard money lenders take on the property in case the borrower defaults on the hard money loan, which means they incur significant risk.
The biggest benefit of hard money loans is fast approval. Since hard money loans are more unregulated than traditional loans from banks, hard money lenders can approve a loan within a couple days, as opposed to the more than a month required to approve a mortgage. This is asset-based investing, which sees speed of approval as the most important real estate metric as opposed to other metrics like interest rates.
Hard money loans give the speed and flexibility needed for investors trying to be competitive in the real estate market.
However, hard money loans also come to significant risks, like higher interest rates, lower LTV ratios and shorter repayment periods than traditional loans. They are riskier than traditional loans and need to be paid off in a shorter amount of time. Most borrowers have to put down a greater proportion of the down payment as a result.
It’s not to trust every hard money lender you come across. You need to find the hard money lender that can get you the best rates and that won’t tack on extra fees.
At Hard Money Lenders IO, we have compiled a list of the best possible hard money lenders in Columbus. Look no further to find the financing partner to secure the property of your dreams.