Macon is a city in central Georgia and otherwise known as “The Heart of Georgia.” About 85 miles southeast of Atlanta, Macon is the fourth biggest city in Georgia. Currently, Macon’s real estate market is thriving during a housing shortage and incredibly high demand for houses. The appetite for homes in Macon is high, but a high price of construction and lack of developed lots is hampering the housing supply.
Right now, Macon is a seller’s market. This means houses are on the market for a short amount of time and selling higher than the listing price on average. The average sale time for a home in 2021 was 38 days, which means interested buyers and real estate investors need to put down offers quickly to compete in the Macon market.
Hard money loans may help real estate investors compete in this market. Otherwise known as last resort loans or bridge loans, hard money loans are loans that can be approved very quickly, and some lenders can be approved within a couple of days as opposed to most traditional lenders requiring a month or more to approve a borrower for a mortgage.
Hard money loans can be approved so quickly because they are less regulated than traditional loans and don’t take into account the credit of the borrower. While most lenders still require minimum credit scores of 600 to 620, the hard money lender takes on the property as collateral. Hard money lenders take on the property in case the borrower defaults on the loan, and they establish terms for the loan with the borrower taking the property into account.
Because of the added risk the hard money lender takes on, hard money loans tend to have lower LTV ratios, higher interest rates, and lower repayment periods than traditional loans. This means hard money loans might need to be paid off within the course of a year or a couple of years, and borrowers need to put down a higher proportion of the home as a down payment.
But hard money loans are advantageous in the Macon market because in real estate investing, time is often money, especially in such a high demand, low supply market as Macon.
It’s important to not just any hard money lender, since many might try to take advantage of investors with extraneous fees. In particular, new investors may run into barriers due to not having successful records of successful real estate investing. Since hard money lending is more unregulated than traditional lending, it’s important to be particularly selective when seeking out a hard money loan.
We at Hard Money Lenders IO have compiled a directory of the best hard money lenders in Savannah. These are trustworthy and reputable lenders who can offer you the best rates and terms possible.