Utah is a state well-known for The Church of Jesus Christ of Latter-day Saints, which is also known as the Mormon Church. It has been home to significant migration in recent years, with a significant increase in home prices. Utah is also home to the technology, business development, and aerospace industries that have been rapidly proliferating. Utah is also home to many ski slopes, mountains, and winter sports, but also a plethora of beautiful cities. It is also a terrific cultural scene. Given its massive job growth, Utah is a great place where investors have been coming to invest in real estate.
There are many terrific markets to invest in real estate in Utah. Utah is home to Provo, Salt Lake City, West Valley City, and other major cities. Utah is also home to many big and renowned universities, like the University of Utah, Brigham Young University, and Utah Valley University. It has a high rental demand for graduated and professionals, and it also has real estate investors who are drawn to the tech scene and Utah’s growth as a tourist destination.
According to Home Union, Utah is the fastest growing state in the country by population. It is a state that has cities that are both seller’s markets and buyer’s markets, so the housing market in Utah as a whole is all over the place. There are some markets where demand is outpacing supply, and other markets where supply is outpacing demand.
Hard money loans might be one of the best ways to invest in real estate in Utah for both those situations. Hard money loans are also known as short-term bridge loans and last resort loans, and it’s important to note they earn the latter reputation for a variety of reasons, including their risks. Hard money loans are known as incredibly risky because of their very unforgiving terms and rates. They have very high interest rates of 8–15%, which are much higher than the 5.6% interest rates of traditional mortgage loans. Hard money loans also have LTV ratios of 65–75%, which are much higher than the LTV ratios of traditional mortgage loans (80%).
However, in a lot of cases, the pros of hard money loans might outweigh the cons. Hard money loans are known for their very fast speeds of approval. They can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved. Hard money loans are also known for being used for real estate transactions where investors try to flip properties for profit. They are used for transactions like fix and flips, long term rentals, and more.
Hard money loans use the property as the asset and collateral. They don’t rely on the credit score of the borrower as the basis of their loans like traditional mortgage loans do. It’s not like credit doesn’t matter, as a high credit score never hurts. But there are different processes for defaults: if a real estate investor defaults on a mortgage, the bank forecloses on the property. But if an investor defaults on a hard money loan, the lender takes on the property and tries to flip the property to generate a profit.
It’s important to only trust the best hard money lenders to get the best terms and rates. That’s why we at Hard Money Lenders IO have made a list of the best investors in Utah.