Taylorsville is a city in Salt Lake County, Utah, and is part of the Salt Lake City metropolitan area. It has a population of just over 60,000 people, and Taylorsville is considered a suburb of Salt Lake City. It is known for a long history of religious settlers and disputes with World War II heroes. It was only incorporated several years ago in 1996, but Tayllorsvile today is known as a terrific Utah city with lots of restaurants and public schools, as well as a very accessible and friendly city.
According to Niche, Taylorsville is a Salt Lake City suburb that gives its residents a dense suburban feel. Most people own their homes in Taylorsville, and it is a diverse city that has lots of outdoor activities, parks, good weather, health and fitness activities, and other jobs. It is very accessible through commute and is known for terrific weather year round. Taylorsville is a place with many young professionals and families, and it has a median home value of $263,800 and a median rent of $1,119. It is known as one of the most diverse suburbs for Utah.
Right now, as of June 2022, Taylorsville is a seller’s market. It’s a place where demand is exceeding supply and where homes are selling fast and for higher than listing price.
Hard money loans might be the best way to invest in real estate in Taylorsville. These loans are known for being used for real estate transactions where investors repair houses in poor condition and flip them for a significant profit. Hard money loans are used for transactions like fix and flips, long-term rentals, and construction projects. Their biggest advantage in a competitive seller’s market like Taylorsville is their very fast speed of approval. While traditional mortgage loans can be really slow to get approved with speeds of more or less a month, hard money loans don’t have that disadvantage. In real estate, time is money, and real estate investors need fast speeds of approval to compete for the most attractive properties in Taylorsville.
But hard money loans also have plenty of disadvantages to complement their pros. They come with very high interest rates, short repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates even well above the interest rates of mortgages right now — the average mortgage of a 30 year loan is 5.6%, which is inaccessible to a lot of first-time homebuyers. Hard money loans have interest rates between 8–15%, which are much more expensive. They also come with repayment periods of more or less than a year, which are much shorter than repayment periods of mortgages. Lastly, since hard money loans come with LTV ratios anywhere from 65–75%, which are shorter than the LTV ratios of mortgages, they require higher down payments so lenders see greater buy-in.
Hard money loans are different from traditional mortgage loans because they don’t use the credit score of the borrower as the asset and collateral. Instead, hard money loans use the property as the asset. They use the after repair value of the property to determine the terms and rates of their loans. If a borrower defaults on a hard money loan, it’s a different process than a foreclosure. The lender will become the homeowner and try to flip the home themselves, which is the reason why so many hard money loans are so expensive.
It’s imperative 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 Taylorsville.