Reston is a town in Fairfax County, Virginia, founded by a man named Robert E. Simon. Simon built a town that would revolutionize suburban America, and Reston currently has a population of over 60,000 people. In 2018, Reston was ranked by Money Magazine as the best place to live in Virginia. It is known for its green space in parks and lakes, as well as shopping and dining opportunities at the Reston Town Center.
According to Niche, Reston is a D.C. suburb that’s one of the best places to live in Virginia. It’s a place that’s great for raising a family and where most people own their homes. Reston is home to a variety of restaurants and coffee shops, and it’s home to many young professionals and families. It has terrific public schools, and is very diverse. Reston has a median home value of $499,200 and a median rent of $1,859.
As of May 2022, Reston is a seller’s market. It’s a place where demand is outpacing supply, and where homes are selling fast and for higher than listing price. Real estate investors in Reston are getting into bidding wars over the best real estate in town, and the town is in a housing bubble like the rest of the country during the pandemic.
Hard money loans might be the best way to invest in real estate in Reston. Hard money loans are also known as short-term bridge loans or last resort loans, but their biggest advantage in a seller’s market like Reston is their very fast speed of approval. Hard money loans can be approved in a few days, which is tremendously faster than traditional mortgage loans, which can take a month or more to be approved. This speed of approval gives investors a competitive edge over properties sold very quickly.
These loans are loans predominantly used for real estate transactions, like fix and flips and long-term rentals. They’re mostly used to repair properties in very poor condition and flip them for a profit. Hard money loans also use the property as the asset — they determine their rates and terms based on the after repair value of the property. By contrast, traditional mortgage loans use the financial standing of the applicant as the asset, and it’s not like hard money loans don’t depend on financial standing (they require an average credit score of 600 to 620), but they don’t rely on financial standing as much as the proeprty itself.
Hard money loans also use the property as collateral. 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 becomes the homeowner.
Because of this, there are a lot of risks to hard money loans as well. They have higher interest rates than traditional mortgage loans. They also have lower LTV ratios and lower repayment periods. Hard money loans have interest rates of 8–15%, which is much higher than the interest rates for traditional mortgage loans. Hard money loans have repayment periods of a year, which are significantly shorter than the repayment periods for traditional mortgage loans. Lastly, real estate investors who use hard money loans have to put down higher down payments because hard money loans have lower LTV ratios.
To get the best terms and rates, it’s essential to only choose 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 Reston.