Paradise is another town in Clark County, Nevada. It’s home to the Las Vegas Strip, the University of Nevada, Las Vegas (UNLV), and Harry Reid International Airport. It’s also home to the majority of tourist attractions in Las Vegas, which give it its well-known name of Paradise. It’s the southern part of the Las Vegas Valley, so Paradise is a big attraction to tourists, as well as anyone who loves living in the middle of the action.
According to Niche, Paradise is a city with an urban feel and a population of just over 193,000 people. It is a place where most people rent their homes, and where there are lots of bars, restaurants, and thriving night life. Paradise is known for its terrific weather, health and fitness opportunities, outdoor activities, and diversity. It is very liveable through commuting and public transportation, and is known as one of the best cities to retire in America. Paradise has a median home value of $263,400 and a median rent of $992.
Right now, Paradise is a seller’s market, and a competitive place where demand is exceeding supply. Prices are high and homes tend to sell very fast. Paradise is a place where real estate investors are in a housing bubble and getting into bidding wars over the best real estate in the city. Given its strong rental market, there are lots of attractive properties to turn for renters.
Real estate investors in the Paradise area should consider hard money loans. Hard money loans are also known as last resort loans, but their biggest advantage in a strong seller’s market like Paradise is their very fast speed of approval. Hard money loans can be approved much faster than traditional mortgage loans, and in real estate, time is often money. Since hard money loans can be approved in a couple of days, they give investors a much bigger advantage than people who use traditional financing, which take a month or more to be approved. Quick financing is a means of putting down much faster bids and being a much more competitive investor.
The reason hard money loans can be approved so quickly is because they use a different asset and collateral than traditional mortgage loans. Hard money loans use the property as the asset. They rely on the after repair value of the property for the terms and rates of their loans. Hard money loans have a different default process from traditional mortgage loans. If a borrower defaults on a hard money loan, the lender becomes the homeowner of the home, which is a very risky process for the lender.
Because of these risks, hard money loans come with a lot of disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of anywhere between 8–15%, which are very high. They need to be repaid within a year, and because their LTV ratios are so low, they need higher down payments than traditional mortgage loans.
Because these terms and rates are so unforgiving, it’s essential to be very careful with hard money loans. Not every hard money lender is trustworthy because some have reputations as loan sharks. Others might tack on points and fees.
We have you covered at Hard Money Lenders IO. Here are the best lenders in Paradise.