Wyoming might not be on the top of everyone’s radar in terms of real estate investing, but it is growing on the map for real estate investors. Wyoming is known for being the least populated state in the United States, but in terms of property taxes and income taxes, Wyoming has a reputation for low crime and low unemployment rates as well, and right now, the state is experiencing booming population growth.
Wyoming is also a place with terrific green space. There are great places to invest in real estate all across Wyoming, including Gillette, Casper, and the capital of the state, Cheyenne. Cheyenne is one of the most popular rental markets with the biggest population in the state.
There are a lot of industries driving employment within Wyoming, including tourism, mining, manufacturing, and agriculture. It is a tax-friendly place for retirees to buy car insurance, as well as a place with a lot of rising home values and rental opportunities. Home values have been rapidly appreciating within Cheyenne, and real estate investors are finding a great return on investments.
Right now, a lot of real estate investors have taken notice. Wyoming is a seller’s market right now. This means demand is rapidly outpacing supply within Wyoming, and houses are selling fast and for higher than listing price. Real estate investors might be getting into bidding wars within Wyoming for prime real estate.
Hard money loans might be the best way to invest in real estate in Wyoming. Hard money loans are also known as last resort loans, but they are known predominantly for being very fast loans. They can be approved within a couple of days, and this extremely fast speed of approval is advantageous because hard money loans can make a real estate investor instantly competitive. This contrasts significantly with traditional mortgage loans, which can take a month to be approved.
Hard money loans have a different asset than traditional mortgage loans, which makes them so fast to approve. They are based on the property, particularly the after repair value of the property, rather than the financial standing of the applicant. While most hard money lenders require minimum credit scores of 600 to 620, hard money loans use the property as collateral. If a borrower defaults on a hard money loan, the lender takes on the property. But if a borrower defaults on a mortgage, there is a time consuming judicial process.
This also means hard money loans come with significant risks. They have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional loans. They have interest rates of 8–15%, repayment periods of more or less a year, and require greater down payments than mortgages.
To buy a home in Wyoming, it’s also important to only trust the most reliable hard money lenders. Not every hard money lender is trustworthy, and many may add on fees that are poorly communicated to borrowers, including origination fees, closing costs, and underwriting fees. In addition, new investors may have a hard time getting hard money loans due to most lenders requiring a successful track record of fix and flips.
At Hard Money Lenders IO, we have made a list of the best hard money lenders in Wyoming. These are the best financing partners for your real estate investment.