When applying rental loans Georgia for the very first time, there’s a lot to keep track of. Even though you may already have insights into the lending process when you purchased the home, the fix and flip loan process is a totally different scenario. Without taking the time do your homework, chances are you’ll make do with higher interest rates.
Rather than turning a blind eye as this happens, ensure you acquaint yourself with the needed information. Below are some of the things to expect when applying for your first fix and flip loan in Georgia.
Form a Business Entity
Now that you have already made up your mind to flip homes, you should always remember that you’re in business for yourself. For this reason, strive to protect yourself and your assets by forming a business entity before taking out fix and flip loans Georgia. One of the best ways to go about this is by having an LLC.
During the loan application process, you may be required to submit documentation for your LLC. This action is aimed at showing what kind of LLC you have and your role within it. Through this action, the lender can know whether or not you’re fit for purchasing that particular property.
Going through the Appraisal Process
When working with private lenders for real estate Georgia and share your LLC and property documents, they will take it upon themselves to order an appraisal on the property. You might be wondering why this is even important in the first place. Well, the appraisal helps them ensure the property is ‘as-is-value’ and its ‘after-renovation value.’ The very moment your hard money lender receives this report, they’ll run risk metrics and calculate the loan amount you qualify for.
Final Thoughts
There you have it, some of the things you need to know before taking out hard money construction loans Georgia. Keep in mind the lender you decide to work with speaks volumes on whether or not you will reap maximum benefits. Even though they all claim to have your best interest at heart, some are only saying this to lure you into working with them.
To avoid falling into the hands of scammers, consider getting in touch with Quick Real Estate Funding today. As a leading fix and flip loan lender in Georgia, rest assured they have your best interest at heart.
