Clarksville is a city in Montgomery County, Tennessee, and it is the fifth largest city in Tennessee. After Chattonooga, Knoxbille, Memphis, and Nashville, Clarksville is one of the biggest cities in Tennessee with a population of 166,722 people. It is the biggest city in its metropolitan area, and was named after the brother of William Clark, who went on the famous Lewis and Clark expedition. Clarksville is home to Austin Peay State University, as well as the oldest newspaper in the state.
According to Niche, Clarksville is one of the best cities in America to buy a house. It is located in Montgomery County and most people own their homes in Clarksville. It is home to many parks and green space, as well as great public schools. Clarksville is where most residents own their homes. It has a median home value of $154,300 and a median rent of $961.
Right now, Clarksville is a seller’s market. It is a place where demand is outpacing supply and supply can’t keep up. It’s also a place where homes are selling fast and for higher than the listing price. Real estate investors are getting into bidding wars in the Clarksville housing bubble.
Hard money loans might be the best way to invest in real estate in Clarksville. Hard money loans are also known as last resort loans and short-term bridge loans. They’re an alternative source of financing to traditional mortgage loans since they’re mostly used for real estate transactions like fix and flips, long-term rentals, and construction projects. Hard money loans give real estate investors an advantage because they have very fast speeds of approval. Hard money loans can be approved in a couple of days, which is much faster than mortgages, which can take a month or more to be approved.
These loans use the property as the asset. They don’t rely on the financial standing of the borrower. Hard money loans require credit scores of 600 to 620, and a good credit score certainly doesn’t hurt — it can help a real estate investor get better interest rates. Hard money loans also have a different default process to traditional mortgage loans. If a borrower defaults on a mortgage, the bank forecloses on the property. But if a borrower defaults on a hard money loan, the lender takes on the property and becomes the homeowner. Every hard money lender needs to prepare themselves for this possibility.
Hard money lenders have plenty of cons and drawbacks as a result as well. They have higher interest rates, lower repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates anywhere between 8–15%, which is significantly higher than the interest rates of mortgages (just above 4%). Hard money loans also need to be repaid within a year, which is much shorter than the repayment periods of mortgages. Lastly, since hard money loans have lower LTV ratios, they require higher down payments for borrowers.
It’s important to note not every hard money lender is trustworthy. Some hard money lenders are known as loan sharks because they tack on extra fees in underwriting fees, origination fees, and closing costs. Other hard money lenders don’t communicate well about these fees. A lot of lenders don’t lend to new investors since they require a successful history of fix and flips and other investments.
That’s why here at Hard Money Lenders IO, we have you covered. Here are the best hard money lenders in Clarksville.
