Leesburg is the county seat of Virginia. It is 33 miles northwest of Washington D.C. and has become a huge commuter suburb in the D.C. area. Leesburg has a population of over 50,000 people and has had a rapidly growing population as a result. It is also very close to Washington Dulles International Airport, and in the last 30 years, it has transformed from a rural town into a community for D.C. commuters, just like Ashburn.
According to Niche, Leesburg is one of the best places to live in Virginia. Leesburg is a great place to raise a family that’s also very diverse. It is a D.C. suburb where most residents own their homes. There are many parks in Leesburg, and the town offers its residents a dense suburban feel. It is home to both families and young professionals, as well as very great schools. Leesburg has a median home value of $434,300 and a median rent of $1,624.
Right now, Leesburg is a seller’s market. It is a place where demand is rapidly outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in the state. Leesburg is a place where homes are selling fast and for much faster than listing price.
Real estate investors in Leesburg should look into hard money loans. Hard money loans are an alternative to traditional financing, and normally used for real estate transactions like fix and flips, long-term rentals, and more. In a seller’s market like Leesburg, hard money loans give a distinct advantage of a very fast speed of approval. While traditional mortgage loans might take a month or more to be approved, hard money loans can be approved in a couple of days. This instantly gives real estate investors a competitive edge over others.
Hard money loans can be approved so quickly because they’re based on the property, not the financial standing of the borrower. They use the property as the asset, and credit score matters in terms of hard money lenders requiring credit score maximums or for investors trying to bring down interest rates, but the after repair value is how hard money lenders determine the rates and terms of a loan. This makes sense given most hard money loans are used to fix homes in disrepair and turn them for a profit.
Hard money loans also use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a very lengthy and costly foreclosure process. However, if a borrower defaults on a hard money loan, the lender becomes the homeowner and takes on the property. Every hard money lender has to be prepared for this possibility when they approve hard money loans.
Because of this, hard money loans also have plenty of cons and disadvantages. The majority of hard money loans have higher interest rates than traditional mortgage loans. Hard money loans have interest rates of 8–15%, repayment periods of approximately a year, and LTV ratios of 65–75%. By contrast, traditional mortgage loans have interest rates of just over 4%, repayment periods of 15 to 30 years, and LTV ratios of 80%. It’s very hard to pay off a hard money loan if an investment does not pay off.
For these reasons, it’s essential to only trust the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Leesburg, so you can find the best financing partners for your real estate transaction.