Provo is the famous home to Brigham Young University, or BYU. It’s the fourth biggest city in Utah, and is only 43 miles away from Salt Lake City. Provo is the biggest city in Utah County, and it is also a city that has a population of just over 115,000 people. Provo is the home a university operated by the Mormon Church, and BYU is constantly competitive in Division I sports. It is a major technology center with lots of startups, and is also home to Peaks Ice Arena. It is also close to Sundance Resort and is known as a great mid-sized city for jobs. It has had significant business job growth.
According to Niche, Provo gives its residents a dense suburban feel, and is a place where most residents rent their homes. It has a lot of terrific health and fitness opportunities and outdoor activities. It has lots of jobs, as well as good public schools. It is a great place to raise a family, and is also a terrific city to commute in. Provo is a city that’s home to many families and young professionals, and currently has a median home value of $298,000 and a median rent of $901.
Right now, Provo is a seller’s market. It’s a place where demand is rapidly outpacing supply, and where real estate investors are seeing homes sell above listing price and incredibly fast. Provo is a city that’s currently in a housing bubble, much like the rest of the country during the pandemic.
Hard money loans might be one of the best ways to invest in real estate in Provo. Hard money loans are an alternative source of financing that’s usually used for transactions where investors flip homes and sell them for a greater profit. They’re used for fix and flips, long-term rentals, and construction projects, and hard money loans are also very advantageous because of their incredibly fast speeds of approval. Hard money loans can be approved in a few days, whereas traditional mortgage loans take much longer (a month or more) to be approved. They give a real estate investor an incredible advantage because they help them appeal to borrowers faster.
Hard money loans are different from traditional financing because they use the property as the asset and the collateral. They don’t depend on the credit score and financial standing of the borrower like traditional mortgage loans do. Hard money loans do require a credit score minimum of at least 600, and a good credit score helps real estate investors qualify for lower interest rates. If a real estate investor defaults a hard money loan, the process is a lot faster than that of a traditional mortgage loan — the lender becomes the homeowner and tries to flip the property themselves.
However, hard money loans also have a significant amount of risks. They have higher credit scores, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates anywhere from 8–15%, repayment periods of more or less than a year, and LTV ratios of 65–75%. By contrast, the average mortgage has an interest rate of 5.6%, repayment periods of about 30 years, and LTV ratios of 80%.
That’s why it’s essential to only trust the very best lenders. We at Hard Money Lenders IO have made a list of the best hard money lenders in Provo.