About Hard Money Atlanta
Hard Money Atlanta is a private lender based in McDonough, GA offering loans in Atlanta. Their focus is mainly on short term fix and flip loans. They provide terms up to 12 months, loans with a maximum LTV of 65%, and rates starting at 14%. Their lending guidelines do not require a minimum credit score. They will consider various lending scenarios but mainly focus on single family units and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Atlanta
Lending Guidelines for Hard Money Atlanta
Below are the general loan guidelines published on the Hard Money Atlanta website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 14%
Typical Terms: 12 months
Points Charged: 4%
Max Loan-to-Value (LTV): 65%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: NO
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Hard Money Atlanta.
Loan Example 1
Kelly is a house flipper in Atlanta, GA. He finds an older property for sale and wants to remodel it and flip it for a profit. The property costs $250,000 but he does not have the full amount so he takes a hard money loan with Hard Money Atlanta. The borrower will have to contribute 20% of the purchase price in cash to the closing based on a 80% loan to value set by the lender. This makes the principle amount from Hard Money Atlanta $200,000. The parameters of the note also stipulate a five point origination fee which will be paid at the closing and a 6 month, interest-only note with a 12% interest rate.
On top of the $10,000 origination fee, Kelly will also fund $50,000 of the purchase with his own money, or 20% of the purchase price. After the loan closes, he will have to pay Hard Money Atlanta $2,000 in monthly interest fees, or 12% multiplied by $200,000 divided by 12 months in the year. Assuming he sells the renovated house for $362,500 at the end of the 6 month term, his total profit (not accounting for rehab expenses) would be $90,500. This is calculated by taking the purchase price ($362,500) and subtracting the principle ($200,000), the origination cost ($10,000), the money he contributed to closing ($50,000), and the total interest expenses ($12,000).
Loan Example 2
Carmen finds a property in Atlanta, GA to renovate and sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Hard Money Atlanta with the following parameters:
$180,000 sales price
60% loan to value (LTV)
6 month term
13% interest rate
5% origination fee
Based on a $216,000 sales price after the 6 month term, the numbers for the project would look like this:
$216,000 sales price
- $108,000 principle on note (60% LTV)
- $72,000 down payment (40% on 60% LTV)
- $5,400 origination fee (5% of the $108,000 principle amount)
- $7,020 total interest paid (6 months x 13% interest)
= $23,580 gross profit (doesn't include taxes or renovation costs)
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