Whitney is an unincorporated town in Clark County, Nevada. It has a population of just under 39,000 people and is a city in southern Nevada. It was named after a dairy farmer named Stowell Whitney, who bought a ranch in the area. Whitney is a Las Vegas suburb that’s home to the Sam Boyd Stadium, where the UNLV college football team used to pay.
According to Niche, Whitney is a very diverse city with a dense suburban feel. It’s a place where most people own their homes, and it has lots of bars which give it a thriving nightlife. It also has lots of parks and green space. Whitney has a median home value of $206,500 and a median rent of $1,156. It is one of the most diverse places in Nevada.
Right now, Whitney is a seller’s market. It’s a place where there’s more demand for housing than supply of housing that exists. It’s also a place where real estate investors are in a housing bubble, where homes are selling very fast and for higher than listing price.
Real estate investors in Whitney should look into hard money loans. Hard money loans are a different form of financing from traditional mortgage loans. They are also known as short-term bridge loans or last resort loans. Hard money loans give a tremendous advantage in a seller’s market like Whitney — they can be approved very, very quickly. While mortgages can take a month or more to be approved, hard money loans can be approved within a couple of days.
Hard money loans can be approved with such speed because they’re based on a different asset than traditional mortgage loans. Hard money loans are based on the property, not the credit score of the borrower. With hard money loans, credit still matters since a good credit score can help a real estate investor get lower interest rates, and most hard money lenders have credit score minimums of 600 to 620.
But hard money loans use the property as collateral, which means if a real estate investor defaults on the property, the hard money lender becomes the homeowner and tries to flip the property themselves for profit.
But it’s not always profitable to the hard money lender. Sometimes the hard money lender loses a lot of money, so hard money loans have significantly harsher terms and rates than mortgages to reflect these risks. Hard money loans have higher interest rates than traditional mortgage loans, even within this very unforgiving housing market. They have interest rates of 8–15%, which are significantly higher than the 5.6% average interest rates of 30 year mortgages in this booming housing market.
Hard money loans also have repayment periods of more or less a year, which are significantly shorter than the repayment periods for traditional mortgage loans, which famously have 30 year repayment periods. Lastly, hard money loans have LTV ratios between 65–75%, which are much lower than the 80% average LTV ratios of mortgages. This usually means hard money loans need to have higher down payments than mortgages so the borrower shows higher buy-in.
However, it’s important to note not every hard money lender is trustworthy — some hard money lenders have reputations as loans sharks because they add extra points and fees, and others don’t communicate well about fees like underwriting fees, closing costs, and origination fees.
But we have you covered at Hard Money Lenders IO. We have made list of the best hard money lenders in Whitney.