Suffolk is a city in Virginia that has a population of just over 94,000 people. It is the 9th biggest city in Virginia, and is the largest city in Virginia geographically. It is located in southern Virginia in the Hampton Roads area, close to Norfolk, Hampton, Virginia Beach, and Newport News. Suffolk is an independent county not associated with a county and is very diverse as well.
According to Niche, Suffolk is a place with a sparse suburban feel. It is a place where most people own their homes and where there are a lot of parks. It is also home to many families and young professionals, and is a place that is great for raising their families and with great night life. The median home value in Suffolk is $254,400, and a median rent of $1,201.
Suffolk is currently a buyer’s market. It is a place where supply is outpacing demand. Homes are taking a long time to sell and for lower than listing price.
Hard money loans might be the best way to invest in real estate in Suffolk. Hard money loans are an alternative source of financing that are predominantly used for real estate transactions like fix and flips, long-term rentals, and construction projects. Hard money loans usually have an advantage in seller’s markets of having very fast speeds of approval. But in buyer’s markets, hard money loans help qualify borrowers for cash-only properties.
Cash-only in real estate means a real estate investor can only use cash to pay for a loan. But it also means a home is in such a state of disrepair the home does not qualify for traditional financing. The home requires significant repairs before it can qualify for traditional financing. It takes significant repairs and renovations before the home can qualify for traditional financing again.
Hard money loans can qualify as cash-only because they’re an alternative source of financing. They also are essentially used to repair homes in disrepair. Real estate investors can make a lot of money repairing homes in disrepair and then making them attractive properties.
Hard money loans use the property as the asset. Hard money loans don’t depend on financial standing as much as traditional mortgage loans. While credit score still matters in that hard money loans require minimum credit scores of 600 to 620, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure procedure. But if a borrower defaults on a hard money loan, the lender takes on the property and becomes the homeowner.
This means hard money loans also have plenty of disadvantages and cons. They have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional mortgage loans. They have interest rates of 8–15%, which are much higher than most traditional mortgage loans (which have an interest rate of just over 4%). Hard money loans also have LTV ratios around 65–75%, which means they require higher down payments than traditional mortgage loans. Lastly, hard money loans have repayment periods of just over a year, which are much shorter than the repayment periods of traditional financing (around 30 years).
It’s important to only trust the best hard money lenders to get the best terms and rates possible. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Suffolk for your real estate transaction.