Wilson is the county seat of North Carolina, and is very close to Raleigh, the capital of the state. Wilson is a Raleigh suburb with a population of just over 49,000 people, and is part of a metropolitan area just under 300,000. It has had exploding population growth in the past 30 years. It has had substantial construction of retail and shopping venues. It is a very diverse city that is very racially mixed. Historically, Wilson was known as “The World’s Greatest Tobacco Market” due to being the site of tobacco cultivation.
According to Niche, Wilson gives its residents a sparse suburban feel, and is a place where most people rent their homes. There are many parks and green space in Wilson. There are many families and young professionals in Wilson as well as great public schools. Wilson is a diverse city with a median home value of $142,700 and a median rent of $762.
Right now, Wilson is a seller’s market. It is a place where demand is outpacing supply, where prices are high and homes sell very fast. It is a housing bubble where real estate investors are getting into bidding wars over the best real estate in the town.
Hard money loans might be the best way to invest in real estate in Wilson. These loans are an alternative source of financing mainly used for real estate transactions, like fix and flips, long-term rentals, and construction projects. The biggest advantage of hard money loans in Wilson is their very fast speed of approval. Hard money loans can be approved within a couple of days, as opposed to traditional mortgage loans, which take a month or more to be approved. This gives real estate investors an instant advantage because they help them acquire fast financing.
The reason hard money loans can be approved so quickly is because they’re based on the property, not the credit score of the borrower. Hard money loans might have minimum credit scores of 600 to 620, and a good credit score certainly doesn’t hurt. Lenders will give lower interest rates for investors with good credit scores. But hard money loans use the property as collateral. If a borrower defaults on the property, the bank forecloses on the property. But if a borrower defaults on a hard money loan, the lender takes on the property and becomes the homeowner, a process that can result in great profit but also great risk for the lender.
Because of this, hard money loans also have lots of disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, which are significantly higher than the interest rates of traditional mortgage loans (just over 4% on average). These loans also have repayment periods of more or less a year, which is significantly shorter than the repayment periods of traditional mortgage loans (30 years).
Lastly, hard money loans have lower LTV ratios of 65–75%, which are significantly higher than the LTV ratios of traditional mortgage loans, which have average LTV ratios of 80%. This means investors have to put down high payments for hard money loans than traditional mortgage loans. With these terms and rates, it can be very difficult to pay off hard money loans with very strict terms and rates.
Real estate investors should only trust the best hard money lenders to give them the best terms and rates on hard money loans. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Wilson.