Thornton is a city in Adams and Weld counties, and it has a population of just under 142,000 people. It is the sixth biggest city in Colorado and the 191st biggest city in the United States. It is a Denver suburb that’s only 10 miles away from Denver. It is a city with a lot of parks and open space, and is accessible through many major highways. Thornton also has a lot of different shopping areas in Larkridge Mall, Thornton Town Center, and more. It is a very clean and family friendly city that’s a very desirable place to live.
According to Niche, Thornton is one of the best place to live in Adams County. It gives its residents a dense suburban feel and is a place where most people own their homes. It’s a diverse city with great jobs, health and fitness opportunities, and outdoor activities. It is a place that’s home to many families and young professionals, with terrific year-round weather and great night life. Thornton has a median home value of $349,000 and a median rent of $1,485. It is one of the most diverse suburbs in Colorado.
As of June 2022, Thornton is a seller’s market. It’s a place where demand is rapidly outpacing supply, and where real estate investors are getting into bidding wars in the housing bubble in the city. Homes are selling very fast and for higher than listing price.
Hard money loans might be one of the best ways to invest in real estate in Thornton. Hard money loans are also known as short-term bridge loans and last resort loans, but their biggest advantage in a seller’s market like Thornton is their very fast speed of approval. Traditional mortgage loans can take a month or more to be approved, and in that time, many investors may lose out on desirable properties. Hard money loans, by contrast, can be approved in a couple of days, which is significantly faster than traditional mortgage loans and can give investors a major advantage. Time is money in real estate, and hard money loans give the advantage of time.
But hard money loans aren’t completely advantageous. They’re known for being a lot more expensive than traditional mortgage loans. They have higher interest rates than even the average 5.6% interest rate of a 30 year mortgage — hard money loans have interest rates anywhere from 8–15%. They also have repayment periods of more or less a year, which is much shorter than the repayment periods of traditional mortgage loans. Lastly, hard money loans have LTV ratios anywhere from 65–75%, which is much lower than mortgages. That means investors have to put down much higher down payments than they do with mortgages.
Hard money loans are different from mortgages because they use the property as the asset. They don’t rely on the credit score of the borrower and financial standing as much as traditional mortgage loans. Hard money loans also use the property as collateral. If a borrower defaults on a mortgage, the bank forecloses on the property, but if a borrower defaults on a hard money loan, the lender takes on the property. They become the homeowner and then try to flip the home themselves, which is why hard money loans are a lot more expensive and unforgiving.
It’s 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 lenders in Thornton.