Savannah is a famous city on the coast of Georgia. It is a rapidly growing metropolitan area with plenty of rental property investors. Savannah’s population growth is coupled with job growth in the market, and Savannah has incredibly high demand for real estate as a result. Savannah is also a historic city. It’s the oldest city in Georgia after being established in 1733, and has been a major port during all major wars in America, including the American Revolution and the Civil War.
As a port, Savannah is a tourist hub as well as a huge renter’s market. As a robust job market that includes aerospace, healthcare, education, and tourism, Savannah has low unemployment and a high GDP. It is a seller’s market since 2021, so homes are selling fast and higher than listing price. Demand for real estate in Savannah is incredibly strong due to a lack of land for development and population growth.
To invest in real estate in Savannah, hard money lenders might be the answer. Hard money lenders give out hard money loans, which are loans predominantly used for fix and flips, repairs for distressed properties, foreclosed homes, and long-term rentals.
Hard money loans have the benefit of fast cash that can be approved very quickly, which is especially advantageous in a real estate market that’s very competitive. They guarantee speed, flexibility, and transparency while most traditional lenders require at least a month or more to get approved with substantial documentation and credit checks.
Hard money loans are based on the property rather than the credit of the borrower. While the majority of hard money lenders still require minimum credit scores of 600 to 620, hard money lenders still use the property as collateral and the basis for the terms of the loan. This means if the borrower defaults on a hard money loan, the lender takes on the property.
Because of the significant risk private hard money lenders take on, hard money loans tend to have higher interest rates, lower LTV ratios, and lower repayment periods than traditional lenders. This results in higher down payments when getting a hard money loan, and strategic investors need to have a strategy for paying off hard money loans and making the most out of their investment.
It’s also important to be selective when choosing hard money lenders. Since hard money lending is very unregulated, many hard money lenders take advantage of investors with origination fees and closing costs. Many do not lend to new investors at all due to new investors not having a track record of successful real estate investments.
But we at Hard Money Lenders IO have found the best hard money lenders in Savannah who can get you the best rates to invest in the market. These are some of the most reliable hard money lenders in the area.