Private money can be obtained from individuals such as friends and family, private lenders, the IRA, and other unconventional sources. It is commonly referred to as hard money and has become an increasingly popular choice for individuals who are looking for finances, but cannot obtain funding from a bank. Finding the right Atlanta private money lenders real estate investors are provided a reliable resource to obtain the best deal.
Funds may be obtained from non-institutional facilities and can be borrowed in the form of a loan from a person or a lending company. Such options are considerably different from that of a bank or credit union and should be assessed before proceeding with an agreement. These loans include much higher interest rates, cover shorter terms, and may only cover a smaller portion of property value.
New home buyers with bad credit are not advised to search for a hard cash solution because it requires payment of a high interest. The real estate investor prefers these options because funds can be obtained a lot faster. This allows for quick action when a property deal comes along and the bank is not willing to provide efficient solutions.
For a large number of investors, distress sales and similar deals can only be purchased within a short window period or the buyer will miss out on the deal. For this reason, it is necessary for agents to obtain funds efficiently. Reliance on private lending means that the finances are received and can be settled with the sale of property.
Where the home that is purchased requires fixing or renovation, the buyer will need to access funds to attend to such restoration. Fast cash allows the estate agent to purchase the property on sale and apply the necessary fix ups for a considerable profit on resale. An investor will be able to make use of such sources of funding when estates prove a bargain.
In many cases the cash that is received may only cover a portion of estates. This occurs when the individual possesses poor credit or cannot provide documentation for income. Such measures are awarded for difficult borrowers who need to the funds despite high interest.
In the search for Atlanta private money lenders real estate investors are advised to search for reputable sources. Such options can provide fast cash and ensure that properties are purchased at a bargain price. Such resources can serve as a wise choice for a smart investor.
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Atlanta Hard Money Financing Brokers in GeorgiaHe suggests you check out the website iFund International