Centreville is a D.C. suburb that has a population of just over 71,000 people. It is located in Fairfax County, and is only 20 miles west of Washington D.C. Many people who live in Centreville commute to Washington D.C. for work, but Centreville is a place that is known for its historic attractions, like Manassas National Battlefield Park and Bull Run Regional Park. There are many wineries in Centreville as well as other attractions.
According to Niche, Centreville is one of the best places to live in Virginia. It gives residents a dense suburban feel, and most people own their homes in Centreville. There are many restaurants in Centreville that give it a thriving night life, and it is known as a great place to raise a family. Centreville is home to a variety of young professionals and families, as well as very highly rated public schools. Centreville has a median home value of $437,500 and a median rent of $1,870.
Right now, as of May 2022, Centreville is a seller’s market. It is a place where demand is outpacing supply and 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 the listing price.
Hard money loans might be the best way to invest in real estate in Centreville. Hard money loans are known as last resort loans or short-term bridge loans, but they’re loans that are mostly used for real estate transactions. For the most part, hard money loans are used for fix and flips, long-term rentals, and other house flipping transactions.
In a seller’s market like Centreville, hard money loans have a distinct advantage of having very fast speeds of approval. They have much faster speeds of approval than traditional mortgage loans, which can take over a month to be approved. Hard money loans can instantly give real estate investors a competitive advantage as a result, since fast financing helps bidders put down faster offers.
Hard money loans can be approved so quickly because they use the property as the asset. They don’t rely on credit score as much as traditional mortgage financing. While hard money loans have credit score minimums of 600 to 620, and some borrowers might rely on strong financial standing to bring down interest rates. But hard money loans use the property as collateral. If a real estate investor defaults on a mortgage, there’s a very long foreclosure process. But if a borrower defaults on a hard money loan, the lender owns the property in a very expedient process.
Because of this reality, hard money loans have plenty of risks. They have higher interest rates, lower LTV ratios, and lower repayment periods. Hard money loans have interest rates around 8–15%, which are much higher than the interest rates of traditional mortgage loans (around 4%). Hard money loans also require higher down payments because they have lower LTV ratios, and hard money lenders usually want to see higher buy-ins. Lastly, hard money loans also have lower repayment periods — they need to be repaid in a year or less on average, which is much shorter than the repayment period of traditional mortgage loans.
It’s essential for real estate investors to only choose the best hard money lenders. We have you covered at Hard Money Lenders IO — here are the best hard money lenders in Centreville.
