In the state of Virginia, in the county of Roanoke there, Cave Spring, VA hard money lenders have been hard at work for years, lending to borrowers with less than stellar credit records. The city of Cave Spring is a CDP area, and has a population of 30,000 people. The city also has a population density of 2,100 people per square mile, and is situated toward the geographical center of the state.
Cave Spring, VA hard money lenders do a good thing for the state of Virgina. What these lenders do is they lend to borrowers that don’t have very good credit. They’re able to do this by bypassing the credit score issue altogether. They have the borrower to secure the debt with real estate. Real estate in the Cave Spring hard money is referred to as a hard asset, and is why these loans are called “hard money loans” to begin with. Hard money lenders in Cave Spring will focus the bulk of their efforts on doing the due diligence about the real estate of the borrower.
Various measures and ratios need to be assessed about these properties, and the correct work needs to be put in, in order to do the deal right for both parties. They have to assess not only the current market value, but based on that value, come up with what is a reasonable quick sale price. It’s this price that the loan will largely be based on. In other words, the size of new construction loan will invariably be based on how fast and at what price the lender can sell the property in case the borrower defaults.