Greenville is the county seat of Pitt County, North Carolina, and the 12th biggest city in North Carolina. It has a population of just under 88,000 people, and is considered a hub for entertainment, health, and education within the Tidewater and Coastal Plain. It’s a haven for young people and one of the best places to start a small business. It is home to East Carolina University, as well as Vidant Medical Center. It is also known for being home to many BMX riders and is known as “BMX Pro Town USA.”
Niche says Greenville gives residents a dense suburban feel. Most people rent their homes in the city, and there are many parks located in the town. Greenville is home to many young professionals, as well as above average public schools. It has a median home value of $161,200 and a median rent of $819.
Right now, Greenville is a seller’s market. Homes are selling high and for above listing price. Real estate investors in Greenville are getting into bidding wars over the best real estate in town.
Hard money loans might be the best way to invest in real estate in Greenville. These loans are known as last resort loans or short-term bridge loans, and their biggest advantage in a seller’s market is their very fast speed of approval. Hard money loans can be approved in a few days, whereas traditional mortgage loans take a month or more to be approved. This fast speed of approval is a huge benefit for real estate investors trying to compete over very selective properties.
The reason hard money loans can be approved so quickly is because they’re based on the property as the asset, not the credit score of the borrower. A good credit score never hurts, as hard money loans have a minimum credit score of 600 to 620, and they can also use a good credit score to have good interest rates. But hard money loans use the property as collateral. If a borrower defaults on the property, the bank initiates a foreclosure. If a borrower defaults on a hard money loan, the lender owns the property in a very quick process. The majority of hard money lenders think about this possibility before they approve a hard money loan.
Because of these risks, hard money loans are inherently very risky. And these risks are reflected in the terms and rates of hard money loans. They have higher interest rates of 8–15%, which are much higher than the interest rates of traditional mortgage loans. Hard money loans also have repayment periods of a year, which are much lower than the repayment periods of mortgages. Mortgages generally have repayment periods of 15 to 30 years. Lastly, traditional mortgage loans have LTV ratios of 65–75%, which are much lower than the repayment periods of traditional mortgage loans, which are 80% on average. This means hard money loans require a higher down payment on behalf of borrowers than traditional mortgage loans.
It’s important to note not every hard money lender is trustworthy. Some lenders tack on extra fees, and others don’t give to new investors because they have a require a successful history of fix and flips and other investments. While new investors can get approved based on other factors like strong financial standing.
At Hard Money Lenders IO, we have made a list of the best hard money lenders in Greenville.