Fargo is the biggest city in North Dakota with a population of over 125,000. It is the county seat of Cass County and on the border with Minnesota in southeast North Dakota. Fargo was founded in 1871 and is famously the home of North Dakota State University, one of the biggest universities in the state.
Fargo is a city with a great renter’s market and is known as a huge economic center in southeastern North Dakota. Rent prices have been increasing, and unemployment is very low. It has a vibrant downtown area with a lot of lodging and eating establishments, and is also home to other major colleges in the metropolitan area. It is known for having a thriving arts community.
According to Niche, Fargo is one of the best places to live in North Dakota and one of the best places to buy a house in North Dakota. It has terrific public schools and is a terrific place to raise a family. With lots of bars and thriving night life, Fargo is also a great college town, and has much rental demand due to many college students and academics renting their homes.
The median home value in Fargo is $212,100, and the median rent is $823, which are both just below the national average. There are more people who rent than own their homes in Fargo.
Right now, Fargo is a buyer’s market. Supply is outpacing demand in the city, and prices tend to be lower and homes tend to stay on the market longer. This contrasts with the seller’s markets in much of the rest of the country during the pandemic housing bubble.
Hard money loans might be very helpful investing in real estate in Fargo. Usually, in a seller’s market, hard money loans have a huge advantage of fast approval speeds, but in a buyer’s market, there are other advantages. One of those advantages is buyers using hard money loans can use hard money loans to buy cash only properties.
Cash only properties are what they sound like — they can only be purchased with cash. However, their underlying meaning in the world of real estate is they don’t qualify for traditional financing because they’re in a state of substantial disrepair. Most banks won’t even touch the property, and hard money loans, since they are mostly used for fix and flips and real estate transactions, can qualify as cash because they’re not traditional mortgages.
Essentially, hard money loans were made to repair homes in disrepair and make them appealing. For sellers, hard money loans are appealing because the investor pays all the money for a home up front.
In Fargo, hard money loans can be used to purchase cash only properties and rehabilitate them into appealing rental properties. In a buyer’s market, a property needs to stand out from other properties in the area.
Again, hard money loans can be approved very quickly because they’re based on the after repair value of the property. They use the property as collateral, not the financial standing of the applicant like traditional financing. They use the property as collateral, which means if a borrower defaults on a hard money loan, the lender takes on the property.
Hard money loans are inherently very risky, which means they have more unforgiving terms and rates. They have higher interest rates (8–15%), shorter repayment periods (around a year), and lower LTV ratios than traditional mortgage loans.
So it’s important to only trust the best hard money lenders to get the best terms and loans. At Hard Money Lenders IO, we have made a list of the best hard money lenders in Fargo to finance your real estate investment