Reno is one of the most popular cities in Nevada and known as “The Biggest Little City in the World.” it is known for both its casino and tourism industries, and Reno is also the biggest city in Washoe County. It is the biggest city in the state outside the Las Vegas Valley, and it is a young population that has recently been experiencing rapid population growth. Reno is a place that’s become a major technology center in the United States, earning investments from huge tech companies like Microsoft, Apple, Google, and Tesla.
According to Niche, Reno is one of the best places to live in Washoe County. It’s a place that is known for great year-round weather, great health and fitness opportunities, great commuting and livability, and a variety of available outdoor activities. Reno is a very diverse city that has an urban suburban mix feel, and is a place where most people rent their homes. It’s home to a variety of bars to give a great night life ,and Reno is also home to many families and young professionals. It has above average public schools and has a median home value of $361,100 and a median rent of $1,107.
Right now, Reno is a seller’s market. It’s a place where more people are looking to buy homes than demand that’s available, and where supply can’t meet that demand. Reno is in a housing bubble right now, much like much of the rest of America during the pandemic and a nationwide housing shortage. It has been appealing to borrowers due to its reputation for having great outdoor activities and as an epicenter of the tech industry.
Real estate investors in Reno should look into hard money loans. Hard money loans are also known as short-term bridge loans and last resort loans, and they’re known for flipping houses. Transactions like long-term rentals and fix and flips are the main purpose of hard money loans, which give investors the advantage of very fast approval speeds. In real estate, time is money, and hard money loans can be approved in a couple of days, which instantly makes real estate investors more competitive. They’re known for being much faster than mortgages, which can take a month or more to be approved. This fast speed of approval makes real estate investors instantly more competitive and put down faster speeds.
Of course, all is not glamorous with hard money loans. Most hard money loans are a lot more expensive than traditional mortgage loans. Hard money loans come with higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates of 8–15%, which is significantly higher than the interest rates of mortgages. The housing market is out of control and surging right now, with average 30 year mortgage rates currently of 5.6%, but still, hard money loans are more unforgiving. While traditional mortgage loans need to be repaid in 30 years on average hard money loans need to be repaid in only a year. They also LTV ratios anywhere from 65–75%, which pales in comparison to the 80% LTV ratios of mortgages.
Hard money loans are so unforgiving due to having the property as the asset, which is much riskier than traditional mortgage loans, which have the credit score of the borrower as the asset. Banks are more protected by having financial standing as collateral, but hard money lenders incur significant risk if a borrower defaults.
It’s important to only trust the best hard money lenders, which is why we at Hard Money Lenders IO have made a list of the best lenders in Reno.