Greensboro is the third biggest city in North Carolina, and it’s the county seat of Guilford County. It is very accessible by car, as it is on the intersection of I-40, I-85, and I-73. Greensboro is the biggest city in the Piedmont Triad metropolitan region, and it is home to the Greensboro Science Center, the International Civil Rights Museum, and the headquarters of the ACC (Atlantic Coast Conference). Greensboro is known for its arts and folk music, and it is the often the host of the North Carolina Folk Festival and even the National Folk Festival. Greensboro is home to Greensboro College, as well as the University of North Carolina, Greensboro.
Greensboro is considered one of the best places to live in North Carolina. According to Niche, it has a population of just under 295,000 people and gives its residents a dense suburban feel. Greensboro is home to many restaurants and green space and great public schools. It is home to many families and young professionals, and is a very diverse city with lots of night lif. It has a median home value of $163,000 and a median rent of $893. It’s a very young city that’s home to many millennials, and its population has been exploding in recent years.
Right now, Greensboro is a seller’s market, which means there’s not enough supply to meet housing demand in Greensboro. It is a place where home prices are high and homes sell very fast, and where real estate investors are getting into bidding wars in the city.
Real estate investors in Greensboro should consider hard money loans. Hard money loans are also known as short-term bridge loans and last resort loans, but their biggest advantage in a seller’s market and major city like Greensboro is their very fast speed of approval. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved.
The reason hard money loans can be approved so quickly is because they’re based on the property, not the credit score or financial standing of the borrower. While a good credit score often gets investors a better interest rate, hard money lenders often just look at whether investors have credit score minimums of 600 to 620. Hard money loans use the property as collateral. 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 in a very fast process where they become the homeowner. Every hard money lender prepares themselves for this possibility before approving a loan so they can make a profit as well.
This means hard money loans also have plenty of disadvantages. They come with higher interest rates, shorter repayment periods, and lower LTV ratios compared to traditional mortgage loans. Hard money loans have interest rates anywhere from 8–15%, which are significantly higher than the just over 4% interest rates of mortgages on average. Hard money loans also have repayment periods of a year, which are much shorter than the repayment periods of traditional mortgage loans (anywhere from 15 to 30 years). Lastly, hard money loans have LTV ratios of 65–75%, which means they require higher down payments than mortgages.
It’s important to select the best hard money lenders, which is why we at Hard Money Lenders IO have made a list of the best hard money lenders in Greensboro.