Knoxville is the third biggest city in Tennessee after Memphis and Nashville, and has a population just under 191,000 people. It is the county seat of Knox County and the biggest city in East Tennessee. Knoxville has a rich history and is now the home of the University of Tennessee, as well as the Tennessee Valley Authority and the Tennessee Supreme Court’s courthouse. It is one of the biggest cities in the Appalachian region.
As for living, Knoxville is known for being very affordable and one of the hottest markets in America. It is close to Nashville, but it is also a hot market because of low unemployment and new homes. There is a burgeoning rental market in Nashville, and Knoxville is also a market where there is rapidly increasing demand not only due to academia, but the economy.
According to Niche, Knoxville is one of the best places to live in Tennessee. It gives residents a dense suburban feel and is a place most people rent their homes. There are many restaurants and bars in Knoxville to give it a thriving night life, and is home to many young professionals. There are many parks in Knoxville as well, which means it has a lot of green space. Right now, the median home value of Knoxville is $136,300 and the median rent is $845, which means it is incredibly affordable compared to the national average.
Right now, Knoxville is a seller’s market. This means home prices are high and homes tend to sell very fast. In Knoxville, there is a housing bubble where real estate investors are getting into bidding wars over the best real estate in the city.
Real estate investors in Knoxville should look into hard money loans. Hard money loans are also known as last resort loans and short-term bridge loans, but their biggest advantage in a seller’s market like Knoxville is their very fast speed of approval. While traditional mortgage loans can take a month or more to be approved, hard money loans can be approved in a couple of days. They can give real estate investors an instant advantage due to their fast financing, and can help them put down faster bids than their competitors.
Hard money loans are an alternative source of financing compared to traditional mortgage loans. Compared to mortgages, they don’t use the credit score of the borrower as the asset. While hard money loans require a minimum credit score of 600 to 620, they don’t rely primarily on financial standing. Instead, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure. However, if a borrower defaults on a hard money loan, the lender becomes the homeowner and takes on the property in a very fast process.
Because of this, hard money loans also come with many disadvantages. They have higher interest rates, lower repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates between 8–15%, which are significantly higher than the interest rates of traditional mortgage loans. Hard money loans also have repayment periods of about a year, which are significantly lower than the repayment periods of traditional mortgage loans. Lastly, hard money loans may have LTV ratios of 65–75%, which means they require higher down payments than traditional mortgage loans.
It’s essential to only trust the best hard money lenders. That’s why we at Hard Money Lenders IO have compiled a list of the best hard money lenders in Knoxville.