How to Finance a Real Estate Investment in Hampton Roads

Posted by Walnut Street Finance Team on May 24, 2018

Now that you’ve found the ideal investment property in Hampton Roads, the last major hurdle to getting your project underway is securing the right type of financing to meet your needs. 

finance real estate investment in hampton roads

Many investors might be eager to head down to the bank and get a loan. The problem is, getting financing for your investment project is a totally different situation than securing a home mortgage. Traditional lenders are usually far stricter when giving money for investment properties - and not without good reason. Investment properties come with far more risk than your traditional mortgage, and if things turned south, borrowers would sooner default on a fix and flip, for example, than the home they actually occupy.

So where should investors turn if they’re looking for financing to meet their needs and help them succeed, along with the flexibility and fast timeline that is so necessary for real estate investment?

Hard Money Lending in Hampton Roads

The best way to finance an investment property in Hampton Roads, Virginia is through a hard money lender.

Right off the bat, hard money loans are more flexible and manageable than traditional mortgages. A typical mortgage will have a 15- or 30-year term, and require a down payment of 10-20%; any less than that, and you’ll find yourself paying a premium in the form of mortgage insurance.

A hard money loan, on the other hand, will have a term of 6 months to two years. Unlike mortgages, hard money loans are based on the value of the property itself - meaning lenders take into account the as-is value, cost of renovations, and the after repair value (ARV) of the home to determine the viability of a loan. In other words, hard money loans are more based on the scope and nature of your investment project than your profile as a borrower. While ambitious and totally qualified investors might be declined by traditional lenders, hard money lenders see projects for what they could be, not for what they are at purchase.

In terms of convenience and accessibility, hard money loans are without peer. In a market as hot as Hampton Roads, speed is paramount when it comes to securing the right investment property. Hard money loans can be approved in just 24 hours, and close in as little as a week. Plus, for borrowers with recovering credit, hard money loans are usually far more attainable than traditional mortgages. 

So, what should a borrower look for in a hard money lender?

Why Borrowers in Hampton Roads Use Walnut Street Finance

When borrowers in Hampton Roads need to finance an investment property, they turn to Walnut Street Finance. 

With more than 30 years combined experience helping borrowers reach their goals, financing from Walnut Street Finance is about more than just the money - every loan comes with a track record of helping borrowers succeed at every step of their investment.

If you’re ready to move on your Hampton Roads property, consider contacting Walnut Street Finance today - we provide financing for a wide variety of projects and needs, including fix and flips, construction projects, acquisitions, and bridge loans.

To learn more about how you can grow your real estate portfolio, check out our free ebook, Building Your Real Estate Empire: Borrower Basics 101.

Building Your Real Estate Empire

Walnut Street Finance Team

Author