Chapel Hill is the famous home to the University of North Carolina. It is home to many academics, and it’s located in the middle of Orange, Durham, and Chatham counties. It also has a population of just under 62,000 people, and is the 16th largest city in the state. It is known as being part of the “Research Triangle” between Durham and Raleigh due to being a haven of academia, and Chapel Hill is also known as being the “Southern Part of Heaven.” It is home to many artists, but it’s also home to many academics and university students given its home to a major university.
Chapel Hill has a very young population and is expected to see exploding population growth as well. It has a job market that’s expected to see massive growth, and the college-aged population gives it a great rental market. Chapel Hill also has a low crime rate, and it attracts many families, as well. There’s a big demand for single family homes, and Chapel Hill is also a great place to raise a family because of a great school system as well.
According to Niche, Chapel Hill is one of the best places to live in North Carolina. It’s one of the best suburbs in the state and gives its residents an urban suburban mix feel. It’s a place where most residents own their homes, and is a diverse place with great schools, a great night life, and is considered a great place for young families. Currently, Chapel Hill has a median home value of $399,700 and a median rent of $1191.
Right now, Chapel Hill is a seller’s market. It is a place where demand is rapidly outpacing supply, where real estate investors have to pay more for homes and homes go fast. It is a housing bubble during the pandemic where investors are getting into bidding wars over the best real estate in Chapel Hill.
Hard money loans might be the best way to invest in real estate in town. These loans are an alternative form of financing to mortgages that give a lot of advantages — in particular, in seller’s markets like Chapel Hill that are incredibly competitive, hard money loans give the advantage of having very fast speeds of approval. They can be approved in a couple of days, whereas traditional mortgage loans can be approved in a month or more. This speed of approval helps investors put down fast bids and be competitive to sellers.
The reason hard money loans can be approved so quickly is they’re based on the property, not the credit score of the borrower. Good credit helps of course — it can help an investor, particularly a new investor get better interest rates. Hard money lenders also have credit score minimums of 600 to 620. They use the property as collateral. If a real estate investor defaults on a hard money loan, the lender becomes the homeowner. Lenders often prepare themselves for this possibility so they can flip the property and make money themselves.
For these reasons, hard money loans also have plenty of risks. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates anywhere from 8–15%, which is much higher than the interest rates of traditional mortgage loans (about 4%). Since they need to be repaid within a year, as well, hard money loans are very hard to pay off if an investment doesn’t work out.
But we have you covered at Hard Money Lenders IO. Here are the best hard money lenders in Chapel Hill to get you the best terms and rates on your loan.