How to get a hard money loan in Atlanta (step by step)

If you've found a property in metro Atlanta that needs work, a bank probably won't lend on it as-is, and even if it would, it won't move fast enough to win the deal. That's where a hard money loan comes in. Here's exactly how the process works, start to finish.

Step 1: Run the numbers before you call anyone

Lenders fund deals, not dreams. Before you reach out, know these four numbers:

Purchase price: what you're paying.
Rehab budget: everything it takes to get the property market-ready.
ARV (after repair value): what it should sell for once it's done, based on recent sold comps nearby.
Hold time: how many months from closing to selling.

Plug them into my free fix & flip calculator to see your loan amount, monthly payment and projected profit. If the deal doesn't work on paper, it won't get better at the closing table.

Step 2: Gather what the lender will ask for

Every lender is a little different, but most will want:

The purchase contract (or the address and price if you're still negotiating)
Your rehab scope and budget, line by line
Comps that support your ARV
Proof of funds for your down payment and closing costs
Your experience (past deals, or the team you're working with if this is your first)
The entity you're buying in, usually an LLC

My Rehab Budget Worksheet and Fix & Flip Deal Checklist will help you pull this together.

Step 3: Apply and get your terms

Once a lender reviews your deal, they'll tell you how much they'll fund (usually a percentage of the purchase and a percentage of the rehab), the interest rate, the origination points and the loan term. Read the terms carefully, and ask about extension fees and how rehab draws are paid.

Step 4: Appraisal or valuation

Most lenders order a valuation to confirm the property's as-is value and the ARV. If it comes back lower than expected, the loan amount may change, which is why solid comps up front matter.

Step 5: Close with a Georgia closing attorney

Georgia is an attorney-closing state, so a real estate attorney handles your closing. The attorney coordinates title, prepares the documents and makes sure the lender's funds and your funds land in the right place.

Step 6: Renovate and request draws

Rehab money is usually held back and paid out in draws as work gets done. After each stage, you request a draw, the lender inspects the work, and funds are released. Keep your contractor on schedule; every extra month is another interest payment.

Step 7: Sell or refinance

When the work is done, you either sell the property and pay off the loan, or refinance into a long-term rental loan (like a DSCR loan) if you're keeping it.

Frequently asked questions

How fast can a hard money loan close in Atlanta?

Hard money loans can often close in one to three weeks, much faster than a bank loan, as long as your paperwork, valuation and title are ready. Having your purchase contract, rehab budget and proof of funds organized up front is the biggest thing you can do to speed it up.

Do I need good credit for a hard money loan?

Hard money lenders focus mainly on the deal itself, meaning the purchase price, rehab budget and ARV, but most still check credit. Stronger credit and experience can mean better terms, and weaker credit may mean a larger down payment.

How much down payment do I need for a hard money loan?

It depends on how much of the purchase and rehab the lender funds. If a lender funds 80% of the purchase and 100% of the rehab, you'd bring the other 20% of the purchase price plus closing costs. Use the calculator to see your numbers.

Can I get a hard money loan for my first flip?

Yes. Many lenders work with first-time flippers, especially when you have a solid deal, a realistic rehab budget and an experienced contractor or partner on your team.

Have a deal in Atlanta that needs funding? Tell me about it.