South Jordan is a suburb of Salt Lake City, only 18 miles away from the big city. It is located in the Salt Lake Valley, very close to the Jordan River, Oquirrh Mountains, and Wasatch Mountains. it has multiple public parks, and there are just over 77,000 people in South Jordan. It’s also a place that was founded by Mormon settlers, and has two Mormon temples, which is a status only Provo also has.
According to Niche, South Jordan is one of the best places to live in Utah. It’s a suburb that gives its residents a very dense suburban feel, and is a place where most people own their homes. South Jordan is also a place where there are a lot of jobs, and a plethora of health and fitness and outdoor activities. It is a great place to raise a family as well as a city with terrific public schools. South Jordan is a very commutable city with many families and young professionals. South Jordan has a median home value of $430,300 and a median rent of $1,504.
Right now, South Jordan is a seller’s market. It’s a place where demand is exceeding supply and where real estate investors are in a housing bubble, with housing costs surging and buyers getting into bidding wars over the best real estate in the city. South Jordan is also a suburb where homes are selling fast and for higher than listing price.
Real estate investors in South Jordan should consider hard money loans. Hard money loans are also known as last resort loans, and they have that reputation for good reason. Hard money loans are risky and investors should consider those risks.
Hard money loans are known for their very exorbitant rates and terms compared to traditional mortgage loans. They have high interest rates, short repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates anywhere from 8–15%, which are much higher than the 5.6% interest rates of 30 year mortgages. They also have repayment periods of more or less a year, which are much shorter than the 30 year repayment periods of mortgages. With LTV ratios anywhere from 65–75%, hard money loans require much higher down payments than traditional mortgage loans.
But in a lot of cases, for properties that can be flipped and turn a great profit, hard money loans have pros that outweigh their cons. In real estate investing, time is money. Hard money loans can be approved very quickly — much quicker than traditional mortgage loans. Traditional mortgage loans take a month or more to be approved. In that time, investors may already lose out on the property of their dreams.
The reason hard money loans are so expensive and can be approved so quickly is because they use the property as the asset, not the credit score of the borrower like traditional mortgage loans. Hard money loans have credit minimums of 600 or 620, and hard money loans also use the credit of the borrower to determine interest rates for new investors. They use the property as collateral, which means there isn’t a mortgage like there is in a traditional mortgage loan. Instead, if a borrower defaults on a hard money loan, the lender takes on the property and tries to flip the home themselves.
Because of all these factors, you should only trust the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best lenders in South Jordan.
