Fix and flop lenders, also called hard money lenders, play a vital role of providing real estate investors with loans for buying and rehabbing fixers fast. This is easy to see why since they loan out money based on the value of a property, rather than solely your creditworthiness or employment history. No wonder more and more real estate investors are taking advantage of fix and flip loans Georgia.
But before you rush into taking out the loan, you ought to keep in mind that fix and flip loan lenders differ from each other. That’s why what works for a colleague may not work for you. To stand a better chance of reaping maximum benefits, take it upon yourself to compare your options before committing to any terms and conditions.
Fortunately, that’s what this simple guide will help you uncover today. Below are some of the important things to know when comparing fix and flip lender’s terms.
First things first, you need to take a look at the loan amounts before deciding on anything. Even though there is no standard amount for rental loans Georgia, a lender will provide a large credit line of up to ten million dollars if you happen to be an experienced lender. In short, your current position on the experience timeline as well as the location you intend to buy and renovate property will affect the loan amounts.
Most private lenders for real estate Georgia base the maximum amount they’ll loan out to borrowers for the purchase of a property on their respective loan-to-value (LTV) ratio. This ratio expressed as a percentage reflects what the lender has calculated the home can be sold for in today’s market if you fail to repay the loan as agreed. However, the LTV doesn’t necessarily equal your purchase price.
The Bottom Line
With hard money construction loans Georgia, it is highly recommended that you find the time to compare different lenders’ terms. You want to be sure that you are getting the best deal available, and this is only possible if you do your homework. Even though it might eat into your precious time, the results are what matter.
So, go out of your way and examine what different fix and flip lenders ion Georgia offer borrowers. Before you know it, you’ll have found the best hard money lender to work with.