Westminster is a city in Adams and Jefferson counties in Colorado. It has a population of just over 116,000 people according to the 2020 census, which makes it the eighth biggest city in the state. Westminster is only nine miles away from Denver, and became populated during the gold rush of the 1850s. It has major corporations that employ a lot of people in technology, medicine, and energy. It also has a lot of trails and open space reserves.
According to Niche, Westminster is a Denver suburb that is one of the best places to live in Adams County. It gives residents a dense suburban feel and is a place where most people own their homes. It has a lot of restaurants and parks, and has a great night life as a result. It is a very diverse place with great weather, lots of health and fitness opportunities, and a lot of outdoor activities for active people. Westminster is a place that’s easy to commute in and is a great place to raise a family with terrific public schools.
Westminster has a median home value of $363,500 and a median rent of $1472. Right now, Westminster is a seller’s market. It’s a place where there’s more demand than supply and where homes are selling for very fast and for higher than listing price. Westminster is currently a housing bubble where real estate investors are putting down a lot of bids and competing with each other in an incredibly cutthroat market.
Hard money loans might be one of the best ways to invest in real estate in Westminster. 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 Westminster is their very fast speeds of approval. Hard money loans can be approved in only a few days, whereas traditional mortgage loans can take a month or more to be approved. This fast speed of approval gives investors an opportunity to put down fast bids in a market where time is money.
Traditional mortgage loans use the credit score and financial standing of the borrower as the asset. However, hard money loans don’t use the credit of the borrower as the asset, but the property itself. That doesn’t mean credit does not matter, since most hard money loans use the credit score of the borrower as a minimum and to lower interest rates. But hard money loans use property as collateral, which means if a lender defaults on a hard money loan, the lender takes on the property and instantly becomes the homeowner. This is a very risky proposition for the lender because they can lose a lot of money if they cannot flip the home themselves.
However, hard money loans also have lots of disadvantages as a result. They come with higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans, which all means hard money loans are very expensive and hard to pay off if an investment goes awry. They have interest rates anywhere from 8–15%, which are much higher than even the high interest rates of 30 year mortgages at the moment. They also need to be repaid in only a year on average, which means investors have to make very high monthly payments.
To get the best terms and rates, it’s essential to only choose the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best lenders in Westminster.