Chesapeake is a city in Southern Virginia, and it is the second biggest city in the state. It is also the 90th most populous city in the country. Chesapeake is surrounded by other major cities in Hampton Roads, like Virginia Beach, Norfolk, and Newport News. It is a very diverse city that is surrounded by rural areas like the Swamp National Wildlife Refuge, and Chesapeake is also bordered by rural North Carolina. It is known as being the home of the headquarters of Dollar Tree, and it is also known for having tons of waterfront property.
Niche says Chesapeake is one of the best places to live in Virginia. It has a dense suburban feel and is a place where most people own their homes. There are lots of parks and green space in Chesapeake, and the city is home to many families and young professionals. It has a median home value of $273,700 and a median rent of $1279. Chesapeake is very diverse, and it has a very educated population.
Right now, Chesapeake 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. Real estate investors are investing in a housing bubble where houses are selling fast and for higher than listing price.
Hard money loans might be the best way to invest in real estate in Chesapeake. These loans are also known for being used for real estate transactions like fix and flips, long-term rentals, and more. The biggest advantage of hard money loans is they can be approved very quickly — traditional mortgage loans can take a month or more to be approved, while hard money loans take a couple of days to be approved. This fast speed of approval is an advantage because real estate investors can put down bids faster.
The reason hard money loans can be approved so quickly is because hard money loans are based on the property as the asset, not the credit score of the borrower. Hard money loans use the property as collateral — it’s not like credit score does not matter, because most hard money lenders have minimum credit scores of 600 to 620.
Real estate investors can bring down interest rates for their hard money loans by having a high credit score, for sure, but the default process is different between hard money loans and traditional mortgage loans. If a borrower defaults on a mortgage, the bank initiates the foreclosure process. But if a borrower defaults on a hard money loan, the lender takes on the property. Every hard money lender needs to be prepared for this possibility before they approve a borrower for a hard money loan.
Hard money loans hence 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 of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. By contrast, traditional mortgage loans have interest rates just over 4%, repayment periods of around 30 years, and LTV ratios of 80%. If a real estate investment doesn’t work out, it can be difficult to pay off a hard money loan.
That’s why to get the best terms and rates possible, it’s essential to only trust the best hard money lenders. That’s why we at Hard Money Lenders IO have compiled a list of the best hard money lenders in Chesapeake.