Sandy Springs is a suburb north of Atlanta and currently home to corporate offices like popular companies like UPS and Mercedes-Benz. In December 2005, Sandy Springs was incorporated in the state. It is known for having a terrific quality of life and known for its nightlife, and the community is a business hub due to having so many corporate headquarters within the city. It is also home to several parks and green spaces, as well as some of the best schools in Georgia. One downside of Sandy Springs is its reputation for having a high cost of living, even compared to Atlanta.
Due to its economy, Sandy Springs is a great place to invest in real estate. According to Rocket Homes, Sandy Springs is currently a seller’s market. This means homes are selling very fast and selling higher than listing prices. Last year, the average sale time of a home was 49 days.
In Sandy Springs, hard money loans might be the best option to invest in real estate in the state. Hard money loans are primarily used for fix and flips, repairs for distressed properties, repairs for foreclosed homes, and long-term rentals. While hard money loans are mostly known as last resort loans, they are used to fund real estate transactions because of their biggest advantage: they have fast closing speeds and approval speeds.
While traditional loans can take a month or more to be approved by a bank, hard money loans can be approved within days by hard money lenders. This is because hard money lending is more unregulated and requires less paperwork than traditional lending. While a borrower’s credit history can be a barrier for buying a home, hard money loans do not factor in credit (although the vast majority of hard money lenders require minimum credit scores of 600 to 620).
Instead, hard money lenders base their loans on the property and whether the property can pay off the hard money loan in case the borrower defaults on the loan. With hard money loans, if the borrower defaults on the loan, the lender collects the property, which is a significant risk. This leads to higher interest rates, lower LTV ratios, and lower repayment periods for hard money loans compared to traditional loans. Paying off a hard money lender may have to be done within a year and have a higher downpayment than a corresponding traditional loan.
As such, it’s important not to trust any hard money lender, given hard money lending is very unregulated. Many hard money lenders may tack on extra fees to take advantage of real estate investors. New real estate investors especially may have difficulty securing a hard money loan because most lenders require some successful real estate investing experience.
It is incredibly important to be selective, and our directory of hard money lenders in Sandy Springs has you covered.
