Burlington is a city in central North Carolina between Alamanace and Guilford counties, and it is the 17th biggest city in North Carolina with a population of just over 50,000 people. It is a very diverse place that has historically been home to the North Carolina Railroad Company, as well as a friendly, clean town with a small town feel. It is very close to cities like Greensboro, and is known for low unemployment, low crime, and being a great mid-sized cities overall.
According to Niche, Burlington is a very diverse place with a dense suburban feel. In Burlington, most people own their homes, and there are a lot of parks and green space. Burlington is home to many families and young professionals, and it’s also home to many great public schools. It’s an affordable place to live, with a median home value of $134,100 and a median rent of $816.
Right now, Burlington is a seller’s market. It’s a place where demand is outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in town. Burlington is a place that’s a housing bubble and homes are selling fast and for higher than listing price.
Hard money loans might be the best way to invest in real estate in Burlington. Hard money loans are also known as short-term bridge loans and last resort loans, and they’re mostly used for real estate transactions like fix and flips, long-term rentals, and construction projects. They’re an alternative source of financing that is incredibly useful in a seller’s market like Burlington because they can be approved very quickly. Hard money loans can be approved in a couple of days, which is significantly faster than the approval speed of traditional mortgage loans, which take a month to be approved. This is an instant advantage because it gives access to fast financing.
These loans can be approved so quickly because they’re based on the borrower, not the credit score of the borrower. Hard money loans don’t depend on financial standing as the main asset of their loan — despite requiring minimum credit scores of 600 to 620, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure. But if a borrower defaults on a hard money loan, the lender takes on the property in a very quick process. This is a process every hard money lender prepares themselves for so they can also make a profit.
Hard money loans also have plenty of disadvantages. They come with higher interest rates, lower repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, much higher than the interest rates of traditional mortgage loans. They also have LTV ratios of 65–75% much lower than the LTV ratios of traditional mortgage loans, which have LTV ratios of about 80%. This means investors who use hard money loans have to put down higher down payments than people who use traditional financing. Lastly, hard money loans have much shorter repayment periods. They usually have to be repaid within a year, which is much lower than the repayment period of traditional mortgage loans.
It’s important to only trust the best hard money lenders because not every lender is trustworthy. That’s why we at Hard Money Lenders IO have compiled a list of the best hard money lenders in Burlington.