When people think of Nevada, they usually think of Las Vegas and gambling. But it’s also one of the best real estate markets in the country, according to Home Union. Nevada is a place known for its growing tech industry, but it is also a great real estate market because of tourism and leisure. While Las Vegas and the Las Vegas Valley as a whole are known for tourism, Nevada is also a great place for business with access to a variety of markets. There is no income tax for people who live in Nevada, nor is there a high corporate income tax either. This leads to a very low cost of living throughout the state.
Nevada is also a place where home sales have been rising throughout the pandemic and the rest of the century. Unfortunately, it is also known for a high property crime rate, particularly in resort and high tourist cities like Las Vegas and Reno. There are a variety of real estate markets in Las Vegas, not just Las Vegas and Reno. These markets include Carson City, Sparks, Enterprise, and Spring Valley.
Right now, most of Las Vegas is seller’s market. Most of the state is a place where demand is outpacing supply, and where real estate investors are getting into bidding wars over housing in the state. It’s a burgeoning housing market where individual and first-time homeowners might have a hard time buying a house, but it’s also a place where homes are selling fast and for higher than listing price.
Hard money loans might be one of the best ways to invest in real estate in Las Vegas, particularly with investment properties. Hard money loans are also known as last resort loans, and they are known for being advantageous in the purchase of investment properties. They’re especially beneficial when buying homes that need a significant amount of repairs and can be flipped for profit. Hard money loans can be approved much faster than mortgages. They can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved. This fast speed of approval helps real estate investors put down bids and win out on properties that they might lose out on if they use traditional financing.
However, it’s not all good with hard money loans — they are known for their very expensive terms and rates. They are known for having very high interest rates, short repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates even higher than the skyrocketing interest rates of mortgages during this housing bubble in America — they have interest rates of 8–15%. Hard money loans also have repayment periods of more or less a year, which are significantly shorter than the repayment periods of traditional mortgage loans, which are 30 years on average. Lastly, hard money loans have LTV ratios anywhere between 65–75%, which means they have require much higher down payments than traditional mortgage loans.
Hard money loans are much more unregulated than traditional mortgage loans, and they can be approved much quicker because they use the property as the asset, unlike traditional mortgage loans that use the credit score of the borrower as the asset. If a borrower defaults on a hard money loan, the lender becomes the homeowner and tries to flip the property themselves.
We have you covered at Hard Money Lenders IO. Here are the best hard money lenders in Nevada.