Norfolk is the third biggest city in Virginia with a population of just over 238,000 people, right after Virginia Beach and Chesapeake. It is one of the oldest cities in the region, after being incorporated in 1705. Since Norfolk is so close to the water, it has lots of riverfront property. It is also home to the largest naval base in the world, Naval Station Norfolk. It is also home to Danish shipping company Maersk Line, Limited, which manages the largest fleet of US merchant vessels in the world.
Norfolk is known for having a burgeoning economy. Its location with an incredible amount of imports and exports, as well as a low cost of living, makes it a very attractive destination.
According to Niche, Norfolk is a city with terrific night life and diversity. It gives its residents a dense suburban feel and is a place where most people who live in it rent their homes. Norfolk is home to many restaurants and bars, and it’s also home to a lot of green space. It’s home to many young professionals and families, and the median home value of Norfolk is $206,700 while the median rent is $1,059.
Right now, Norfolk is a neutral housing market. It is a place where demand is equal to supply, and homes are selling for about listing price, and staying on the market an average amount of time.
Hard money loans might be the best way to invest in real estate in Norfolk. Hard money loans are known for being used in real estate transactions like fix and flips, long-term rentals, and construction projects. Their biggest advantage is they can be approved very quickly. Hard money loans can be approved in a few days, whereas traditional mortgage loans can take a month or more to be approved. This is a very big advantage because fast financing allows a real estate investor to put down faster bids.
Hard money loans can be approved so quickly because they’re based on the property as the asset, not the credit score of the borrower. Credit still matters, since most hard money lenders require a minimum credit score of 600 to 620. And it’s not like a good credit score hurts — it will help a real estate investor get better interest rates for their loan. But a hard money loan uses the property as collateral. There’s no foreclosure if a real estate investor defaults on a hard money loan — instead, the lender takes on the property and becomes the homeowner. Every hard money lender prepares themselves for this possibility if the borrower defaults because they would want to flip the home and make a profit themselves.
Because of these added risks, hard money loans come with plenty of risks. 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%. This is significantly higher than the interest rates of traditional mortgage loans, which are just over 4% on average. Hard money loans also have to be repaid in a year, which is significantly lower than the repayment period of a traditional mortgage loan (around 30 years). Since these loans have lower LTV ratios, they come with higher down payments to show greater buy in.
That’s why it’s essential for hard money lenders to find the best terms and rates for the loan, and find the best lender to give them those terms and rates. At Hard Money Lenders IO, we have you covered. We have compiled a list of the best hard money lenders in Norfolk.