Arlington is located in Northern Virginia, right across the Potomac River from Washington D.C. It is the second largest city in the Washington metropolitan area, and it is located in Arlington County. Arlington has a population of just over 238,000 people. It is known for being a D.C. suburb that’s home to the Pentagon, Reagan National Airport, and Arlington National Cemetary. It’s also home to the law school at George Mason University and Marymount University, as well as the co-headquarters of Amazon. It is one of the most highest income places in the United States, as well as one of the most densely populated ones.
According to Niche, Arlington is one of the best places to live in Virginia, and one of the best places in America for raising a family. Arlington gives its residents an urban feel and is a place where most residents own their homes. It is home to a variety of bars and restaurants to give it a thriving night life, and Arlington is also home to many young professionals. It has terrific public schools and is very diverse. Arlington has a median home value of $705,400 and a median rent of $1970.
Right now, Arlington is a seller’s market. It’s a place where demand is rapidly outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in the state. Home are selling fast and for higher than listing price.
Hard money loans might be the best way to invest in real estate in Arlington. Hard money loans are also known as short term bridge loans and last resort loans, and their biggest advantage in a seller’s market like Arlington is their very fast speed of approval. Hard money loans can be approved in a few days, which is significantly faster than the speed of approval of traditional mortgage loans, which can take a month or more to be approved. Hard money loans instantly give real estate investors a competitive edge over other investors because of fast financing and fast bids.
These loans are predominantly known for being used in real estate transactions like fix and flips, long-term rentals, and construction projects. THey’re mostly used for real estate transactions that repair homes in disrepair. Hard money loans can be approved so quickly because they’re based on the property as the asset, not the financial standing of the borrower.
Hard money loans might have minimum credit scores of 600 to 620, and a good credit score certainly does not hurt — it can help a borrower secure better interest rates. Hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank forecloses on the property, but if a borrower defaults on a hard money loan, the lender takes on the property in a very expedient process. Every hard money lender prepares for the possibility of becoming the homeowner and flipping the property themselves.
Hard money loans come with plenty of risks and disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates between 8–15%, which are much higher than interest rates of mortgages (just over 4%). Hard money loans also need to be repaid within a year which is much shorter than the 30 year repayment period of a mortgage.
It’s essential to only trust the best hard money lenders, which is why we at Hard Money Lenders IO have compiled a list of the best lenders in Arlington.