Virginia has a hot market and tends to move in favor of sellers. This isn’t the best news for investors just starting out. However, if you plan to fix and flip, you can reap high profits in this market. Some of the most desirable areas of Virginia’s real estate market include Virginia Beach, Fairfax, Woodbridge, Arlington, Norfolk, Chesapeake, and Richmond. These are also the main areas where homes can fetch high prices.
If your focus is on renting and using the BRRR method, be aware that the price of rent is also rising. In 2010, Virginia landlords collected roughly $1,382 in rent per month. As of January 2020, landlords can now expect around $1,648 per month on average. The exact figure depends on the area and the size of the home, but the average square foot is at an impressive $1.14. That means a small family 2,000 square foot home could bring in $2,280 in monthly revenue if you partner with the right hard money lenders.
These high prices signal growth: Not just population growth, but of the economy as well. The Virginia Realtors Association points to several indicators that this is true. The first is that Virginia is expected to experience steady job growth. There should be a 1.2% increase in available job opportunities by 2019, which translates into roughly 48,000 new jobs.
The good news is that the market hasn’t caught on quite yet. This makes it the perfect time for real estate investors to step in before the population sees a spike and prices climb even further. From luxury condos in Alexandria to beachfront properties in Virginia Beach and city apartments in Hampton, a wealth of opportunities await you.
As experienced hard money lenders backed by a multimillion-dollar company, we have what it takes to finance any qualifying project you want to tackle. We especially enjoy working with real estate investors who fix and flip homes as well as those who embrace the BRRR method. We understand the steps necessary to make a profit from these and other strategies and look forward to playing a decisive role in your real estate investment journey.
Some investors rely on hard money lenders to purchase rental properties and then rent them to long-term tenants. Others prefer to take advantage of Airbnb opportunities in the market. At Gauntlet Financing, investors who already have stabilized investment properties can use the income from these properties to get rental loans.
Investors in Virginia can earn an average of $1,785 per month from renting out their homes to guests. One of the best cities for Airbnb is Portsmouth. When it comes to long-term tenants, Virginia Beach is a
good option. Not only is it a desirable location to live in, but the number of people choosing to rent over getting a mortgage has continued to increase in this area.
Fix and Flip Loans
There’s a lot of talk about the low inventory of homes available on the market. The truth is, there are several diamonds in the rough. The real issue is that most people want move-in ready homes. Working with hard money lenders can make it possible for you to purchase these diamonds in the rough and polish them for potential buyers.
This presents a win-win for yourself, the buyers, and the market. With home prices soaring, some sweat equity could lead to big profits. The buyer also benefits from a home that is not just move-in ready but also recently remodeled, as many are willing to pay more for these homes. Finally, the housing market benefits from more houses being brought back into the active market.
New Construction Loans
Modern-day Americans don’t build homes as often as they used to. As mentioned before, people much prefer to move into homes that are only awaiting furniture and a few new coats of paint at the most.
However, when fix-and-flip opportunities aren’t on the market, you can work with private money lenders to finance a new construction home. New construction loans are sometimes a little harder to qualify for, so choosing an experienced builder to make the process smoother can be a great help.
Hard money lenders don’t often offer bridge loans in Virginia, but at Gauntlet Financing, we believe access to this type of financing is important. Sometimes you see a home on the market and have limited time to take it before the competition starts. Waiting on money to come in from a recent sale can cost you this lucrative investment. This is where a bridge loan comes in handy.
However, qualifying for a bridge loan is no easy feat. You must ensure that you have a good credit score to support multiple homes. If you meet this requirement, then your chances of securing a bridge loan are high. In addition, providing proof of incoming funds helps improve your chances, too!
If you don’t have the high credit score necessary to qualify for a loan on your own, you may feel discouraged. The best alternative is to secure assistance from two other parties who have the required credit score to secure the property you have in mind. In this case, hard money lenders allow you to qualify for the loan due to your joint partnership with more qualified parties.
Before deciding if a joint venture loan is right for you, consider the people offering to partner with you. How much are they asking for in return? Will you be able to turn a profit so you can keep investing in real estate? These are just some of the top questions you need to answer.
With a low home inventory set to drive up prices in Virginia, Gauntlet Funding is prepared to help investors move quickly and take advantage of the future appreciation.