Johnson City is a city that spans three counties in Tennessee, and it has a population just over 71,000, which makes it the eighth biggest city in the state. It is one of the “Tri-Cities” alongside Kingsport and Bristol. Johnson City has historically been a railroad center as well as a the home for East Tennessee State University. Because of its railroad history, Johnson City is known as “BoomTown.” It is also known for having many trails and historic parks. It has the nickname of“Little Chicago.”
According to Niche, Johnson City is one of the best cities to live in Tennessee. It gives residents a dense suburban feel and is a place where most people own their homes. Johnson City is home to lots of parks and green space, and is a great place to raise a family with great public schools. Johnson City, being home to a major university, is also a place with a thriving night life with lots of bars and restaurants. Right now, Johnson City has a median home value of $167,500 and a median rent of $755.
As of May 2022, Johnson City is a seller’s market. It is a place where demand is outpacing supply and real estate investors are getting into bidding wars over the best real estate in the area. Homes are selling fast and for higher than the listing price.
Hard money loans might be the best way to invest in real estate in Johnson City. Hard money loans are an alternative source of financing that is mainly used for real estate transactions like fix and flips and long-term rentals, and is a place where real estate investors try to secure fast financing to flip houses. This fast speed of approval is a major advantage of hard money loans — hard money loans can be approved within a couple of days, which is significantly faster than the speed of approval of traditional mortgage loans. This very fast speed of financing is an instant advantage since investors can put down faster bids.
Hard money loans can be approved so quickly because they’re based on the property, not the credit score of the borrower. Financial standing still matters — a good credit score never hurts since it can position an investor for lower interest rates, and hard money loans still have minimum credit score requirements of 600 to 620. But hard money lenders use the property as collateral — if a real estate investor defaults on a mortgage, the bank forecloses on the property. But if an investor defaults on a hard money loan, the lender takes on the property and becomes the homeowner. Every hard money lender considers this possibility before approving a loan.
Because of this, hard money loans also have plenty of disadvantages and cons. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, which is significantly higher than the interest rates of mortgages (just over 4% on average). Hard money loans also have short repayment periods of around a year, which is significantly shorter than the repayment periods of traditional mortgage loans (famously around 15 to 30 years). Lastly, hard money loans have lower LTV ratios, which means they require higher down payments.
It’s essential to get the best terms and rates for hard money loans since they’re often so unforgiving. That’s why we at Hard Money Lenders IO have you covered. Here are the best hard money lenders in Johnson City.