Your credit score is a gauge of your creditworthiness and overall financial health. Because your credit is such a crucial part of your financial identity, it’s critical to establish solid credit as soon as possible.

A good credit score might also provide you with a competitive edge when taking out loans. On the other hand, a bad credit score can make your major financial transactions more expensive.

Here’s why maintaining a good credit rating is beneficial.

Lower Interest Rates

Lower interest rates on your loans are one of the key advantages of having good credit. When you apply for a loan, a credit card, or a mortgage, your credit score determines your interest rate.

Applicants with a higher credit rating obtain the lowest rates, while those with poor credit scores often pay higher interest rates.

Improved Chances of Obtaining A Credit Loan

If you’ve ever been turned down for a loan or a credit card, you know how frustrating it can be. If you are denied funding for something you require, such as a car, mortgage, or student loan, you can land in a difficult situation.

However, having a higher credit score increases the chances of your loan being approved. Of course, your credit score isn’t the only consideration for lenders, but it is one of them.

Approval for Certain Jobs

A personal credit check is required for some jobs, such as those requiring a security clearance or dealing with money.

This is to ensure that you are financially capable and will not be subject to bribery as a result of financial difficulties. Certain jobs may not be available to you if you have a bad credit score.

Loan and Credit Card Limits Increased

If you have a decent credit rating, you’ll be able to get larger loans, such as loans required to get a mortgage in some high-cost-of-living areas. You can potentially be eligible for higher credit card limits.

Improved Credit Card Benefits

A higher credit score opens up a wider range of credit cards with better benefits, in addition to a higher credit limit. Many of the highest rewards cards demand good credit.

This includes travel rewards cards that may be used to pay for your entire vacation, as well as cash-back rewards cards that give you a percentage back on your purchases.

Approval for Rental Properties Is Easier

Even if you never intend to purchase a home, you will require a strong credit score. Many people are unaware that even landlords take the credit score in to account when evaluating the tenancy application form.

If you have a strong credit score, you’re more likely to get approved as a tenant since a landlord prefers someone with a history of timely payments versus someone with many loan defaults.

If you don’t, you might have to pay a significant deposit, sign a short-term lease, or even get turned down for accommodation.

Even if your credit ratings aren’t that favorable, you can still get your loan approved. At Commercial Private Equity, we can help you out.

We’re reliable commercial hard money lenders in Atlanta and specialize in bridge, raw land, development, construction, bridge, and other specialized loans for commercial properties.

Contact us for more information.

The key reason for considering a hard money loan is to purchase an asset with it that will help increase your wealth. As a result, real estate investors leveraging their real estate holdings or cash to make additional profitable investments are the most prevalent users of hard money loans.

The reasons for choosing a private lender over an institutional lender vary. However, the most common reason real estate investors prefer hard money lenders is the convenience with which they can obtain a loan and have funds disbursed.

Here are a few potential instances in which a hard money loan could benefit you.

Acquisition of a Distressed Property

Often, real estate investors look for properties that might not be financed conventionally and can be purchased at a discounted price

To purchase them, they will require cash or a private Lender with cash on hand. In these situations, it is customary for the investor to seize a good chance as soon as possible.

A hard money loan works in the same way as cash. It allows you to buy a property at a lower price and creates value for you while you can repay the loan later.

Foreclosure Auctions

Foreclosure is when a bank demands the sale of a property to repay a loan. The sole goal of a foreclosure is to get the loan amount that the borrower is unable to pay back.

If the property sells for more than the amount owing at the foreclosure auction, the remaining funds go to the debtor. At a foreclosure auction, the starting bid cannot exceed the amount owed to the bank, allowing an investor to purchase a property at a reduced price.

The person purchasing the property must have the cash to participate in this process. Hard money loans help you purchase foreclosed homes. If you can buy a house for $100K less than what it’s worth and it only costs you $15K to borrow the money, it’s a steal deal for you.

Fix-And-Flip

A fix and flip is a real estate investment technique in which a real estate investor buys a property at a discount, renovates it, and sells it to make a profit.

The goal of any flip transaction is to get a good deal on the property. It’s also crucial to be aware of the property’s defects and to be able to fix them. A real estate investor can add value and profit by fixing general property distress, fire damage, leaky roofs, and other necessary updates. Traditional lending cannot work to finance such properties.

A hard money lender will provide you the funds to buy the property, make necessary renovations, and sell it for a good price, making a decent profit.

If you’re looking for reliable commercial private money lenders, Commercial Private Equity can help you out. We’re leading hard money lenders in Atlanta and specialize in bridge, raw land, development, construction, bridge, and other specialized loans for commercial properties.

Contact us for more information about our financing options.

There are a variety of funding solutions available for your business ventures, including microloans or short-term loans if you need money urgently. You can also take out large-scale loans to grow your firm, but every loan comes with its own set of terms and conditions.

If you’re looking for financing options to fund your real estate investments, hard money loans are the ideal option to go for. Here’s why they are the best choice for your real estate investments.

They Quickly Approve and Fund Your Applications

The speed with which a loan is granted and funded is one of the most significant features of hard money loans. It is possible to receive approval in as little as one day.

Only the property you’ll be investing in, adequate financial reserves to make monthly payments, your exit strategy, and the down payment is what a hard money lender is interested in. If you meet these criteria, you will be granted a loan.

You can get funding in around 3-5 days, much faster than the 30-plus days it takes a bank to fund your loan once you have approval.

There Are Fewer Prerequisites for Approval

In comparison to bank loans, hard money lenders impose fewer restrictions. A loan with fewer restrictions has a higher chance of approval.

Banks have a comprehensive list of standards that you must follow to be considered for financing, which increases the likelihood of your loan being denied.

Each year, the list of requirements becomes more extended, making loan applications even more challenging to navigate. Recent foreclosures, short sales, loan modifications, bankruptcies, bad credit ratings cause banks to be concerned and refuse to lend you money.

On the other hand, a private lender has no such restrictions, making loan approval hassle-free.

They Hardly Reject Loan Applications

You may be ineligible to apply for a bank loan for several reasons. Maybe there are issues with property’s water and electrical systems or its foundation, causing the bank to rule the property unfit for financing.

Banks are risk-averse lenders who will reject your loan application if there are even minor inconsistencies. If you don’t fulfill their stringent lending conditions, your application will be refused right away.

Hard money loans can come to your rescue at this time. They can assist you in investing in a property with challenges that prohibit it from qualifying for a standard bank loan if banks have refused your loan application.

If you’re looking for reliable commercial private money lenders, Commercial Private Equity can help you out. We’re leading hard money lenders in Atlanta and specialize in bridge, raw land, development, construction, bridge, and other specialized loans for commercial properties.

Contact us for more information about our financing options.

Going for a land loan is the best option when you want to finance raw lands for investment purposes. But it isn’t as simple and easy as applying for a mortgage. It brings forth unique challenges for potential buyers.

This blog details three things you need to consider when applying for a raw land loan.

Land Basics: Access, Zoning, and Boundaries

The lender will evaluate if the deal you’re getting is profitable or not. Therefore you must have surveyors draw the borders and design a blueprint for you to present to the lender who’d then analyze your project and decide accordingly.

Clear-cut boundaries will help the lender have a better idea of the property which would otherwise have been missed out during evaluation. Double-check land-use regulations and zoning before submitting the final report to the lender to avoid discrepancies.

Access to Basic Utilities

Access to utilities is another significant consideration for residential sites. Lenders will readily help you invest in properties that have adequate electricity, water, sewer, and cable installments. To save you time, you must submit all the documentation and certification needed for the essential utilities.

Always check with the local planning authority to see what the future holds for your area. A new family spot across the street has the potential to increase property prices in the coming years, whereas a sewage treatment facility or a highway is not profitable. Presenting profitable plans might help convince your lender to invest in the property.

Land Use: Immediate Construction, Improvements Required, Speculative Investment

The loan terms, such as interest rate and down payment, are mostly based on the land’s intended use. Therefore, getting a land loan is usually more challenging and stressful than getting a mortgage for an existing house.

This is because an existing home provides the bank with tangible and instant collateral, whereas new construction has a higher risk of things going out of hand.

It’s better to have land that’s ready for construction as it’s next in preference to existing homes by the banks. Things can go wrong, cause delays, or cost more than the intended budget, but it is still possible to achieve the desired outcome in the long run. The down payment is usually 15-20% of the total amount.

Undeveloped land with no plans to develop it is simply a speculative investment for the future. A project in this manner, for example, could entail purchasing land as a new motorway is going to be developed nearby.

So when the motorway construction is complete, the expectation is that the site will appeal to developers looking to establish a new community with a quick commute into the city. As a result, the land might subsequently sell for a profit. For such speculative investments, a down payment can reach up to 50%.

If you’re looking for land loans for your next investment, contact Commercial Private Equity!

At Commercial Private Equity, we provide private specialized loans, including construction loans, workout loans, raw land loans, and bridge loans. To make loan acquisition easy for our clients, we also have a three-level loan program with different loan requirements.

Contact us now to make your dream investment project come true.