Asheville is a city in Buncombe County, North Carolina. It is the biggest city in Western North Carolina, and it is known for its mountains, as evidenced by its nickname of the “Land of the Sky.” In particular, Asheville is located on the Blue Ridge Mountains. Asheville is located between the French Board and Swannanoa Rivers, and it is the biggest cities in the Asheville metropolitan area. Asheville has a population of just over 94,500 people, which means it has had exploding population growth in the last ten years.
According to Niche, Asheville is one of the best places to live in North Carolina. It gives its residents a dense suburban feel, and is a place where most people rent their homes. There are many coffee shops, bars, and restaurants in town, which give it an “A” night life score. There are also lots of parks and green spaces, and Asheville is home to many young professionals and great public schools. It has a median home value of $270,400 and a median rent of $1,043.
Right now, Asheville is a seller’s market. It is a place where demand is outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in the state. Homes are selling very fast and for higher than listing price, and it can be a very competitive and cutthroat market.
Hard money loans might be the best way to invest in real estate in Asheville. Hard money loans are known as short-term bridge loans and last resort loans, but they are known for being an alternative source of financing to traditional mortgage loans. Hard money loans give a tremendous advantage in seller’s markets like Asheville because they have very fast speeds of approval. They can be approved in a couple of days, as opposed to traditional mortgage lenders, which can take a month or more to be approved. This fast speed of approval makes investors instantly competitive in a seller’s market like Asheville, since it gives very fast financing.
The reason hard money loans can be approved so quickly is because they’re based on the property, not the credit score of the borrower. They don’t depend on financial standing as much as mortgages — they have minimum credit scores of 600 to 620, and hard money loans can also have lower interest rates if the borrower has a good credit score. However, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the lender owns the property in a very fast process. Every hard money lender prepares themselves for this possibility before approving a hard money loan, and will try to flip the home themselves.
For this reason, hard money loans have plenty of disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. By contrast, traditional mortgage loans have interest rates of just over 4% on average, repayment periods of more or less 30 years, and LTV ratios of 80%. If a real estate investment does not pay off, it can be very hard to pay off a hard money loan.
At Hard Money Lenders IO, we have you covered finding the best partners for financing your real estate transaction. Here are the best hard money lenders in Asheville.