Jackson is a city in Madison County, Tennessee. It is a regional center for West Tennessee and the biggest city in the Jackson Metropolitan area. As of the 2020 census, Jackson has a population just over 68,000 people. Jackson is alsohome to Tennessee’s Supreme Court for West Tennessee, and is known as a small town that is home to Jackson State Community College. It is one of the most diverse places to live in Tennessee.
According to Niche, Jackson is a city that gives its residents a sparse suburban feel. Most people own their homes in Jackson, and Jackson is a very diverse place with lots of families and young professionals. It is very affordable, with a median home value of $133,200 and a median rent of $877.
Right now, Jackson is a buyer’s market. It is a place where supply is exceeding demand. It’s also a place where homes are selling below listing price and stay on the market for a long time.
Hard money loans might be the best way to invest in real estate in Jackson. They are loans that are an alternative to traditional mortgage loans, that use the property as the asset rather than the financial standing of the borrower. In a seller’s market, hard money loans have the benefit of having very fast speeds of approval. They can be approved in a couple days, which is significantly faster than the approval speed of traditional mortgage loans.
In a buyer’s market, however, hard money loans have different advantages. They can be used to purchase cash-only properties. In real estate, cash-only means investors can only use cash to pay for the property. But it also means a home is in such a state of disrepair the bank won’t approve the house for traditional financing. Real estate investors can make a lot of money turning these properties into attractive ones for renters and homeowners.
Hard money loans can qualify as cash in cash-only properties because they’re an alternative to traditional financing. And they were essentially made to repair homes and flip them for a higher price anyway — hard money loans are mainly used to fix homes in disrepair for transactions like fix and flips, long-term rentals, and construction projects.
Hard money loans use the property as the asset and collateral. They don’t depend on the credit score of the borrower like traditional mortgage loans do. Hard money loans have a minimum credit score of 600 to 620. A good credit score can also help an investor get a better interest rate on a loan. The default process is different between hard money loans and 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 owns the property. Every hard money lender prepares themselves for this possibility before approving a loan.
That’s why hard money loans also have lots of disadvantages and drawbacks. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates between 8–15%, which are significantly higher than the interest rates of traditional mortgage loans. They also have repayment periods within a year, which are shorter than the repayment periods of mortgages. Lastly, hard money loans require higher down payments than traditional mortgage loans.
That’s why we at Hard Money Lenders IO have compiled a list of the best hard money lenders in Jackson.