Sparks is the fifth biggest city in Nevada, with a population of just over 108,000 people. It is located in Washoe County, and Sparks is a suburb just east of Reno. Historically, Sparks has been known as “The Rail City” and “City of Promise.” It is known for being a major railroad center on the way to California. Sparks is a diverse city that has a famous casino and annual rib cook-off. Sparks feels like a city, but isn’t nearly as crowded as Reno or Las Vegas.
According to Niche, Sparks is a Reno suburb that gives residents a dense suburban feel. It’s known as one of the best places to live in Nevada. It’s a place where most people own their homes and where there are lots of bars for a great night life, and a lot of parks for terrific green space. Sparks is home to many young families and young professionals, as well as above-average public schools. It is known for having a lot of great outdoor activities, as well as terrific weather year-round. Sparks currently has a median home value of $324,000 and a median rent of $1,244.
Right now, as of July 2022, Sparks is a seller’s market. It is a city where demand is exceeding supply and where real estate investors are getting into bidding wars over the best real estate in town. Sparks is a place where buyers and investors are seeing homes sell very fast and for higher than listing price.
This means investors in Sparks should consider hard money loans, which might be one of the best ways to invest in real estate in the city. Hard money loans are an alternative source of financing to traditional mortgage loans, and they are mainly used for real estate transactions where investors are buying homes in poor condition and then flipping them for a much greater profit. Hard money loans give a terrific advantage in seller’s markets like Sparks, of having very fast speeds of approval. Hard money loans can be approved much faster than traditional mortgage loans. They can be approved in a couple of days, as opposed to the month or more it takes to be approved for a traditional mortgage loan.
The reason hard money loans can be approved so quickly is they have a different asset from mortgages. Hard money loans do not use the credit score of the borrower as the main asset of their loans. Instead, they use the property. It’s not like credit does not matter since hard money loans require investors to meet credit score minimums, and because hard money loans require investors to have good financial standing to secure lower interest rates.
However, hard money loans use the property as collateral, which means if a borrower defaults on a hard money loan, there isn’t a foreclosure. The hard money lender just becomes the homeowner in a very expeditious process where the lender tries to flip the property themselves. This can result in a lot of loss of money, but it can also result in great profit for the lender.
This means it’s an inherently very risky process. Hard money loans are known for having unforgiving terms and rates, especially very high interest rates and very short repayment periods. Despite America having a skyrocketing housing bubble, hard money loans still have 8–15% interest rates, which are significantly higher than the interest rates of traditional mortgage loans (the average 30 year mortgage has a 5.6% interest rate).
So, we at Hard Money Lenders IO have you covered in finding the best hard money lenders in Sparks. Here are the best partners for your real estate transaction.