Greeley is the tenth biggest city in Colorado, and the county seat of Weld County. It has a population of just under 109,000, and has seen an incredible increase in population from the 2010 census. Greeley is located in northern Colorado and was founded by agricultural reporter Nathan Meeker in the New York Tribune. It was named after Tribune editor Horace Greeley. It is located only 49 miles away from Denver.
According to Niche, Greeley is a place with a dense suburban feel where most people own their homes. It is a very diverse city with a terrific economy and lots of opportunities for health and fitness and outdoor activities. It is very liveable and easy to commute in and to, and is known for having great weather year-round. There are lots of parks in Greeley and the city is home to many young professionals and young families. It has a median home value of $274,800 and a median rent of $1,063.
As of June 2022, Greeley, Colorado is a seller’s market. It is seeing homes sell for higher than listing price and very fast. Demand is exceeding supply, and Greeley is currently in a housing bubble where home prices are skyrocketing. While first-time homebuyers are having a hard time buying homes in Greeley, investors are seeing terrific opportunities buying investment properties for profit in flipping homes and rentals.
Hard money loans might be one of the best ways to invest in real estate in Greeley. Hard money loans are an alternative source of financing mainly known for flipping houses and for real estate transactions like fix and flips, long-term rentals, and more. These loans give investors an incredible advantage in seller’s markets like Greeley. Most traditional mortgage loans take a month or more to be approved, and in that time, investors may have already lost out on a property they want. Hard money loans, by contrast, can be approved in a couple of days, and can make investors instantly competitive.
But hard money loans also have plenty of disadvantages to complement their advantages. They are expensive and can be very difficult to pay off if a real estate investment does not pan out. Hard money loans have much higher interest rates than mortgages, with 8–15% interest rates, even higher than the very high interest rates of 30-year mortgages right now (5.6% on average). Hard money loans also have repayment periods of more or less a year, which means they need to be paid back very quickly. With LTV ratios anywhere from 65–75%, hard money loans require much higher down payments from investors to show bigger buy-in than with traditional financing.
The reason hard money loans are so expensive and can be approved so quickly is not only because they’re less stringent and regulated than traditional financing, but because they’re based on a different asset. Hard money loans use the property as the asset, not the credit score of the borrower. Credit matters for investors using hard money loans because they help investors get better interest rates, and there are also credit score minimums of 600 to 620. If a borrower defaults on a hard money loan, it’s a different process than it is for a mortgage. The lender becomes the homeowner and then tries to fix and flip the property themselves in a very fast process.
This means it’s essential to choose only the best hard money lenders. That’s where we have you covered — at Hard Money Lenders IO, we have made a list of the best hard money lenders in Greeley.