Huntersville is a suburb of Mecklenburg County and a part of the Charlotte metropolitan area. It has a population of just over 58,000 people, and in the past ten years, it has exploding population growth. Only 14 miles away from Charlotte, Huntersville is known for being the home to Joe Gibbs Racing, a NASCAR driving team with five NASCAR Cup Series drivers. It also has multiple museums and the Carolina Renaissance Festival.
According to Niche, Huntersville is one of the best places to live in North Carolina. It gives its residents a sparse suburban feel and is a place where most people own their homes. There are many parks and green space in North Carolina, and it’s also home tom nay young professionals and young families. It has above average public schools, and homes in Huntersville have a median home value of $301,500 and a median rent of $1305.
Right now, Huntersville is a seller’s market. That means demand is outpacing supply in Huntersville. It is a place where homes are selling fast and for higher than listing price. It is also a housing bubble where real estate investors are getting into bidding wars over the best real estate in the suburb.
Hard money loans might be the best way to invest in real estate in Huntersville. Hard money loans are mainly used for real estate transactions, but they’re mostly used to fix homes in disrepair and then flip them for a higher profit. They’re used for transactions like fix and flips, long-term rentals, and construction projects. Hard money loans have a huge advantage of being approved very quickly — they can be approved in a couple of days, as opposed to traditional mortgage loans, which can take a month or more to be approved. This fast approval speed is an incredible asset to investors to bid on homes through fast financing.
Hard money loans can be approved so quickly because they’re based on the property, not the financial standing of the borrower. Hard money loans usually have a minimum credit score of 600 to 620, and a good credit score most certainly doesn’t hurt. It’ll help an investor get a better interest rate on a loan. But 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 owns the property in a very expedient process.
This means hard money loans have a lot of risks. They have higher interest rates, lower LTV ratios, and shorter repayment period than traditional mortgage loans. Hard money loans have interest rates of 8–15%, which is significantly higher than the interest rates of traditional mortgage loans (just over 4%). Hard money loans also have repayment periods of more or less a year, which is much shorter than the repayment periods of mortgages (more or less 30 years). Lastly, hard money loans have LTV ratios of 65–75%, which is much lower than the LTV ratios of traditional mortgage loans (around 80%).
Not every hard money lender is trustworthy. Some hard money lenders tack on extraneous fees like underwriting fees, closing costs, and origination fees. Also, many hard money lenders don’t give to new investors since they require a successful history of fix and flips.
We have you covered at Hard Money Lenders IO — here are the best hard money lenders in Burlington.