Best hard money lenders in Georgia – factors to consider
Hard money lenders provide quick short term loans for investors who are looking to purchase or renovate properties. For individuals who are unable to get financing from the bank or other traditional lenders, hard money loans can be a much-needed fix. Typically, there’s a less stringent underwriting process and the applications are approved within as little as 24 hours to a few days. If you’re looking for hard money in Georgia, this page will help you identify the best lenders.
When selecting a hard money lender to work with, you need to put into consideration several factors. You want to identify a reputable Georgia hard money lender who offers short term loans that can be funded fast and serviced without unreasonable prepayment penalties.
- Lending rates – all hard money lenders charge higher interest rates compared to traditional financing institutions. That is because the hard money lender has more risk than a traditional bank and requires less paperwork and red tape. Most hard money lenders charge 15%+ for a hard money loan. Atlanta Private Lending rates start at just 10.99%.
- Loans fees – these types of loans require an origination fee that can go up to 10%+ of the loan value. Consider the loan origination fee in the overall cost of the hard money loan.
- Loan terms – other loan terms such as the repayment duration are also very important. Most lenders offer a repayment period within the 1-5 years range. Many reputable hard money lenders in Georgia do not impose prepayment penalties.
- Qualifications – the qualifications will vary from one lender to the other. However, some lenders will want to see a minimum credit score. Other factors such as the borrower’s experience level and investment background, as well as the qualifications of the investment property itself, will also be put into consideration.
- Funding time – some of the best lenders can approved an application within just a few days, which allows investors to close deals quickly.
- Customer service – customer service is an important in every business. Whether you’re dealing with an online lender or a local lender, you want to make sure that they answer questions properly and treat their customers right.
Up-front fees – you want to be careful with hard money lenders that charge up-front fees. It is one thing to pay for an appraisal up-front but to pay loan fees, origination fee, could be risky.
Tips to choose the best hard money lender in Georgia
- Determine your needs – the first step to choosing the best hard money lender in Georgia is to establish your specific needs. Keep in mind that there are different types of hard money loans. There are lenders who specialize in fix and flip loans, new construction loans, bridge loans, as well as rental property loans. Once you have what you need lined out clearly, it’ll be easier to find a company that can meet your requirements.
- Focus your search locally – many hard money lenders lend out money almost exclusively to customers within their geographical location. This is understandable given that they’ll need to inspect the property in question to determine whether it meets their criteria. Although companies that operate nationally are available, these tend to offer less flexibility compared to local lenders.
- Insist on transparency – transparency is important in all business dealings – especially in hard money lending where large sums of money are involved. A good lender should be very transparent during the origination process and answer all your questions. Lenders who offer advertising bait only to propose different terms in the real situation should be treated with suspicion.
Atlanta Private Lending
This is a direct private money lender that is based in Atlanta, Georgia. The company offers to provide some of the most competitive financing and provide excellent customer service to their borrowers. What makes this one of the best private lenders in the state of Georgia is their transparency, quick process, and relatively fair terms.