Casper is the second-largest city in the state of Wyoming, and it is the county seat of Natrona County. It has a population of a little less than 60,000 people, and it is known as “The Oil City” due to its association with the oil industry in Wyoming. The Salt Creek Oil Field was historically built nearby,
Casper is known for having a suburban feel, and being a place where most residents own their homes. It is home to many retirees and young professionals and is known for having great schools. Casper has a median home value of $207,400 and a median rent of $851. It is known as a great city to live for people who love the outdoors.
Right now, Casper is a seller’s market. Demand is rapidly outpacing supply in Casper, and homes are selling for above listing price and very fast. Casper is a city where real estate investors may be getting into bidding wars over available properties, since all over Wyoming, real estate investors have been taking note of properties that have been arising across the state.
Hard money loans might be the best way to invest in real estate in Casper. Hard money loans have a huge benefit to real estate investors in seller’s markets like Casper — they have very fast speeds of approval. This speed of approval is incredibly advantageous in seller’s markets because it makes investors competitive, and gives real estate investors a leg up over borrowers using traditional financing. With traditional financing, mortgages can take more than a month to be approved.
Hard money loans are also known as last resort loans, but they’re approved so quickly because they’re used for real estate transactions like fix and flips, long-term rentals, and construction projects. They are also used for repairs of distressed properties and were essentially designed for these repairs. Hard money loans can be approved so quickly because they’re based on the property, and they use the property as collateral. This means they don’t require an extensive review of a borrower’s financial standing.
While financial standing still matters in terms of minimum credit scores, hard money loans prioritize the after repair value of the property to dictate rates and terms of a loan. In the case where a borrower defaults on the property, hard money lenders will take on the property, which is much more expeditious and quick process than the foreclosure that results from defaulting on a mortgage.
Hard money loans have extensive risks because of the added risks the lender takes on. 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%, and they have repayment periods of more or less a year. They require larger down payments from real estate investors than traditional financing since they often require a show of greater buy-in.
It’s essential to only trust the best hard money lenders, since not every hard money lender is trustworthy. Some do not communicate well about fees like origination fees, closing costs, and underwriting fees until signing. Others do not lend to new investors due to requiring a successful track record of fix and flips and other successful real estate investments.
Here at Hard Money Lenders IO, we have compiled a list of the best hard money lenders in Casper. Here are the best financing partners for your investment.