Bartlett is a town in Shelby County, Tennessee. It has a population of just under 55,000 people, and was originally called “Union Depot due to its proximity to a major stagecoach depot. Bartlett is located in suburban Memphis and is located in northeastern Memphis. It has a very diverse population and is known for being home to many arts and culture centers, like the Bartlett Performing Arts and Conference Center and the John H. McFadden House. The recreation center is known for its swimming pool, workout rooms, and running track as a 55,000 square foot facility that’s considered the epicenter of the town.
According to Niche, Bartlett is a Memphis suburb that that has a rural feel and is considered one of the best places to live in Tennessee. Barlett is a place with lots of parks and green space, and it is a place where most people own their homes. In Barlett, many families live there and it’s considered a great place to raise a family. Barlett is a diverse city with above average public schools, and it has a median home value of $185,100 and a median rent of $1383.
Right now, Barlett is a seller’s market. It is a place where demand is outpacing supply. It is a place where homes are selling fast and for higher than listing price. It is a housing bubble where real estate investors are getting into bidding wars over the best real estate in the state.
Hard money loans might be the best way to invest in real estate in Bartlett. Hard money loans are known as short-term bridge loans and last resorts, and their biggest advantage in a seller’s market like Bartlett is their very fast speed of approval. Hard money loans can be approved in a couple days, whereas traditional mortgage loans take a month or more to be approved. This is a tremendous advantage in Bartlett because fast financing can help investors put down faster bids.
The reason hard money loans can be approved so quickly is because they’re based on the property as the asset, not the credit score of the borrower. Hard money loans are an alternative source of financing to mortgages. It’s not like credit score doesn’t matter, since hard money loans require a minimum credit score of 600 to 620.
A good credit score certainly doesn’t hurt, since a good credit score secures better interest rates. However, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank fore closes on the property. However, if a borrower defaults on a hard money loan, the lender becomes the homeowner. Every hard money lender prepares themselves for this possibility before approving a loan.
Hard money loans hence have a lot of cons and 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 around a year, and LTV ratios of 65–75%. Traditional mortgage loans, by contrast, have interest rates of just over 4% on average, repayment periods of approximately 30 years, and LTV ratios of 80%. If a real estate investment does not pan out, the hard money loan is very hard to pay off.
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 hard money lenders in Bartlett.