Pueblo is the county seat and biggest city in Pueblo City, Colorado. It has a population of just under 112,000 people and is the ninth biggest city in Colorado. It is known as “Home of Heroes,” “Steel City,” and is known as “A City of Excellence.” As the ninth biggest city in Colorado, Pueblo is in the “Banana Belt” and is known for getting much less snow than other parts of Colorado. It is known as “Steel City” due to being a major steel producing city in the country. It is known as being one of the most affordable places to live not only in Colorado but in the United States.
According to Niche, Pueblo is one of the best cities to retire in in America. Pueblo is known as a suburb where most people own their homes. It’s an incredibly diverse city that has great weather year-round, and it has great nightlife and terrific weather. Pueblo is accessible to commute through and get around, and is known for great outdoor activities through its parks and green space. It is home to many families and has above average public schools. Pueblo has a median home value of $149,600 and a median rent of $826.
Pueblo is currently a seller’s market, much like the rest of Colorado. There are more people looking to buy homes than there are available homes in Pueblo, which means demand is outpacing supply in Pueblo. Pueblo is a place that’s a housing bubble, where homes are selling incredibly fast and for higher than listing price.
Investors in Pueblo should look into hard money loans as one of the best ways to buy investment properties in the town. Hard money loans are an alternative source of real estate often used for buying homes in poor condition and then flipping them for a greater profit. Hard money loans are mainly used for transactions like fix and flips, long-term rentals, and construction projects. In Pueblo, they give a tremendous advantage of having very fast speeds of approval. Hard money loans can be approved in only a couple of days, which is significantly faster than traditional mortgage loans, which can take a month or more to be approved. Hard money loans can help real estate investors qualify for properties that traditional mortgage loans can’t.
Hard money loans can be approved so quickly because they’re based on the property, not the credit score of the borrower. To be clear, credit still matters, particularly for new investors. Most hard money lenders won’t lend to an investor with a credit score under 600, and hard money lenders also give better interest rates to investors with high credit scores. But hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure. But if a borrower defaults on a hard money loan, the lender takes on the property and then tries to take on the property themselves.
This means hard money loans come with lots of disadvantages as well — they come with higher interest rates, shorter repayment periods, and lower LTV ratios because of the added risks the lender takes on. In particular, hard money loans come with interest rates of 8–15%, which are significantly higher than the interest rates of mortgages even in this surging housing market (5.6% on average for the typical 30 year mortgage).
That’s why it’s so important to only choose the best hard money lenders, which is why we at Hard Money Lenders IO have made a list of the best hard money lenders in Pueblo.