Gillette is a city in Campbell County, Wyoming, and it has a population of about 30,000 people. It is a city that is very involved in the coal industry and called the “Energy Capital of America,” and is also known for its media, education, and arts. The whole state of Wyoming is known to produce 35% of the country’s coal, and Gillette is responsible for much of this. Gillette also has a burgeoning tourist industry, as well as many national monuments like Devils Tower National Monument.
According to Niche, Gillette gives residents a suburban feeling, and most people who live in Gillette own their homes. There are many restaurants in Gillette, and the city is known to have great schools. The average rent is $216,500 in Gillette, and the median rent is $898, which means Gillette is on par with the national average. It is a closely-knit community with a lot of green space.
Gillette is a seller’s market with growing real estate demand. Supply is not meeting greater buyer demand for housing, and demand is rapidly outpacing supply. Real estate investors need to put down offers very fast to compete in the Gillette market, and real estate investors can often get into bidding wars over the same properties.
Hard money loans might be the answer to real estate investing in Gillette. Hard money loans are otherwise known as last resort loans or short-term bridge loans, but hard money loans have the huge advantage of a very fast speed of approval. Hard money loans can be approved within a couple of days, while traditional mortgage loans can take more or less a month to be approved.
The reason hard money loans can be approved so quickly is that they’re based on the property. Hard money loans use the after-repair value of the property to dictate their rates and terms. This contrasts with traditional mortgage loans, which use the financial standing of the applicant to determine the terms of the loan. While hard money loans still require minimum credit scores of 600 to 620, most hard money loans use the property as collateral. If a borrower defaults on a hard money loan, the lender takes on the property, and there is not a foreclosure like there is when a borrower defaults on a mortgage.
This means hard money loans are inherently very risky. They have much more unforgiving rates and terms than traditional mortgage loans. Hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional mortgage loans. They have interest rates of 8–15%, repayment periods of more or less a year, and require greater down payments than traditional financing.
Not every hard money lender is trustworthy, so it’s essential to only select the best hard money lenders. Some hard money lenders may tack on extra fees like origination fees, closing costs, or underwriting fees. Others might not convey these fees very well to potential borrowers until signing. New investors in particular might have a hard time getting hard money loans due to hard money lenders requiring a successful track record of real estate investments.
At Hard Money Lenders IO, we made a list of the best hard money lenders in Gillette so you don’t have to. Look no further for the best financing partners for your fix and flip or other real estate transaction in this market.
