Birmingham, Alabama is the second biggest city in Alabama and consequently the second biggest market in the state. As the epicenter of the Civil Rights Movement, where Martin Luther King wrote his famous Letter From Birmingham Jail, Birmingham is a historic city in Alabama. It is also well known for its history of mining and manufacturing.
It is also a terrific real estate market. According to Jeff Rohde at Roofstock, Birmingham has been a rapidly growing city with over 200,000 people. It is among the best business climates in the country, with everything a real estate investor can dream for. Median home sales have been rapidly rising, making it a terrific city for both short-term fix and flips and long-term rentals.
Despite rising rental prices, the city is still a popular place to invest. Its quality of life, given its still affordable rent prices, near perfect weather, and growing economy are some of the reasons why Birmingham is a fantastic city to invest.
For long-term rentals, in particular, hard money loans are the perfect resource. They are a great way to gain cash to fund fix and flips, long-term rentals, and repairs for distressed properties and foreclosed homes.
For investors with low credit scores in particular, hard money loans are an avenue for securing quick cash for competitive properties. Hard money loans don’t have the qualifying restrictions of traditional loans — most don’t look at credit scores (although most require a credit score minimum of 600 to 620). In real estate investing, time is sometimes more important than other real estate metrics, and securing money fast is key to securing the property of your dreams.
If you default on a hard money loan, the property is the collateral, which means the lender owns the property. The lender also does not have to go through the lengthy and expensive process of a foreclosure. The rates on a hard money loan are determined based on the projected future value of a home after repairs.
Hard money loans are flexible and dependable, but they can sometimes be seen as a last resort option for investors.
However, hard money loans also come with significant risks. They can have high interest rates, low LTV ratios, and low repayment periods. Also, not every hard money lender is trustworthy — many take advantage of new investors and have high origination fees and closing costs.
As a result, you must be selective about which hard money lender you select. We at Hard Money Lenders IO have found the best hard money lenders in Birmingham, who are trustworthy for experienced and new investors. Look no further for a partner in buying the potential home of your choice.