Carson City is the capital of Nevada, and the sixth largest city in the state. It has a population of just under 59,000 people, according to the 2020 census. Carson City is located on the southeastern corner of the state, on the state’s border with California. Carson City has long been a railroad stop and a place for migrants to California to stop. It has nicknames of “Carson,” “CC,” and “The Capitol.”
According to Niche, Carson City is one of the best places to raise a family in Nevada. It has a dense suburban feel, and is a place where most people own their homes. There are many bars and restaurants in Carson City to give it a thriving night life, and Carson City is a diverse city with a median home value of $299,900 and a median rent of $982.
Right now, Carson City is a seller’s market, much like rest of the country during the current housing market. It is a place where demand is outpacing supply, and where real estate investors are in a housing bubble of homes selling very fast and for higher than listing price. A lot of investors are getting into bidding wars that drive up the price of homes.
This means hard money loans might be one of the best ways to invest in real estate for real estate investors. Hard money loans are also known as last resort loans, but in seller’s markets and housing markets, they have distinct advantages to help bidders get ahead in housing bubbles. Hard money loans have speeds of approval that can make investors instantly competitive. While traditional financing often has a speed of approval of more or less a month, hard money loans can be approved in a couple of days. This speed of approval allows investors to put down very fast bids and become appealing buyers.
By design, hard money loans are used for buying homes in poor condition and then flipping them for a higher profit. They’re known for real estate transactions like fix and flips, long-term rentals, and various construction projects. They are very different from traditional mortgage loans in the sense that they have a different asset. Mortgages rely on the financial standing and credit score of the borrower, while hard money loans do not.
Hard money loans might rely on credit to give borrowers lower interest rates, but they use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure. But if a borrower defaults on a hard money loan, it’s a much faster and more convenient process. The lender instantly takes on the property and becomes the homeowner, and then tries to flip the home themselves.
This is very risky for the lender because it’s not always a profitable process. Many times, lenders can actually lose money. Hard money loans are known for their higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans are especially known for their 8–15% interest rates, which are even higher than the skyrocketing interest rates of mortgages in our current housing market, which are 5.6% on average for a 30 year mortgage. Hard money loans also notoriously need to be repaid in a very short amount of time, which is a year.
It’s important to find the best hard money lenders to get the best terms and rates for your loan. That’s why we at Hard Money Lenders IO have made a list of the best lenders in Carson City.