Colorado Springs is the second biggest city in Colorado. It has a population of just under 479,000 people, and is known as “Olympic City USA.” Colorado Springs is known for its parks, its museums and performing centers, and being home to the Garden of the Gods, an incredibly beautiful National Natural Landmark. Colorado Springs is also known for affordable housing, a strong sense of community, and a very high quality of life in a city known for being in the mountains. Pikes Peak, “America’s Mountain,” which rises 14,000 feet, is located near Colorado Springs. Since 2010, it has seen tremendous population growth, and it stands 6,000 feet above sea level.
According to Niche, Colorado Springs is located in El Paso County and is one of the best places to live in Colorado. It gives its residents a dense suburban feel and is a place most people own their homes. Colorado Springs is known for being a very diverse city with great weather, health and fitness opportunities, and outdoor opportunities. It has great public schools and is a great place to raise a family. Colorado Springs has many coffee shops and parks, as well as terrific public schools. It has a median home value of $294,500 and a median rent of $1196, which means it’s more affordable than many of the Denver suburbs.
Right now, as of June 2022, Colorado Springs is a buyer’s market. There is more supply of homes than demand, and homes are selling slow and below listing price.
Hard money loans might be the best way to invest in real estate in Colorado Springs. These loans are known for being used in real estate transactions where investors buy homes in poor condition and then repair them for profit. Hard money loans are used in transactions like fix and flips, long-term rentals, and construction projects. In seller’s markets, hard money loans usually have the distinct advantage of having very fast speeds of approval, but in buyer’s markets, bidders aren’t getting into intense bidding wars. Instead, hard money loans have very different advantages in buyer’s market.
In a buyer’s market like Colorado Springs, hard money loans have the distinct advantage of qualifying buyers for cash-only properties. In real estate, cash-only means the home can only be paid for in cash, but it also means a home is in such poor condition the bank did not qualify the home for traditional financing. In fact, the bank refuses to even touch the property. Purchasing a home with cash gives a lot of advantages to sellers, including getting rid of the risk of default.
Hard money loans can qualify as cash in cash-only purchases. They can qualify as cash because they were essentially designed for the purpose of repairing homes in disrepair, and because hard money loans are an alternative to traditional financing. Real estate investors can make a lot of money buying homes in disrepair and turning them into appealing properties.
But hard money loans also have a lot of disadvantages. They come with higher interest rates of 8–15%, which is higher than the interest rates of traditional mortgage loans in this current housing market. Hard money loans also come with shorter repayment periods and lower LTV ratios than traditional financing, so they can be very expensive.
That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Colorado Springs for your real estate transaction.