Nevada, a captivating western state, is nestled near California, Arizona, and Idaho. With its vast area, it’s worth noting that the majority of Nevada’s population resides in Clark County. The rest of the state is characterized by deserts and agricultural regions. The state’s largest metropolitan area, Las Vegas – Paradise Metro, includes the bustling cities of Las Vegas and Carson City. Nevada boasts a rich American Indian heritage, Spanish cultural influences, and vibrant nightlife and casinos in Las Vegas and Reno. Home to over 3.1 million people, Nevada is a popular destination for tourism, winter retreats, and business endeavors. Its stunning landscapes and diverse economy make it an ideal place to call home.
As a result of the high demand for real estate in Nevada, the housing market is fiercely competitive and more expensive compared to many other areas in the country. According to the Las Vegas Realtors Association, the median price of homes for sale in Nevada is $495,000. The region offers a variety of suburban and urban areas, boasting luxurious properties, estates, multi-family condos, and apartment communities. For those considering purchasing real estate in Nevada, keep in mind that escalating home prices continue to rise year after year.
Interestingly, a significant portion of Nevada’s population prefers renting homes, especially during the winter months or for vacation purposes. According to the U.S. Census Bureau, 67.9% of people in Nevada own their homes, while 32.1% choose to rent. Furthermore, 5.4% of rental properties are currently vacant, providing an opportunity for purchasing new investment properties suitable for short-term rentals, long-term rentals, or flips.
How Hard Money Loans Can Help in Las Vegas
In Nevada, it’s quite common for real estate investors to turn to hard money loans to finance their investment properties. Hard money loans are asset-based loans that utilize the property’s value as collateral. In the event that the borrower defaults on payments, the lender has the legal right to pursue foreclosure and sell the property to recoup their investment. This arrangement gives hard money lenders in Nevada a certain level of protection and risk mitigation, especially considering the high-risk nature of many residential properties.
Typically, hard money loans are used for purchasing high-risk properties such as fix-and-flip homes, construction loans, rental income properties, and commercial real estate. They can also serve as bridge loans for high-risk properties or inexperienced borrowers who face difficulties obtaining loans from traditional banks or credit unions. These loans are often short-term, ranging from 1 to 5 years, allowing the lender to recoup their funds sooner while giving the borrower ample time to refinance or sell the property.
While hard money loans in Nevada can be competitive, they come with higher interest rates varying from 8% to 15%. Numerous factors influence borrowers’ eligibility for these rates, including their down payment availability, credit scores, and experience in the rental market. Lenders also need to assess the potential profitability of renting the properties and the property’s value after necessary repairs have been made. Several considerations determine whether lenders will extend loans for high-risk real estate ventures.
Top Nevada Hard Money Lenders for Your Real Estate Ventures
If you’re considering a real estate investment project in Nevada, here are six top hard money lenders available in the state:
1. NV Capital Corporation
NV Capital Corporation entered the private money lending landscape in Nevada through a team of commercial bankers. Their offerings include industrial park loans, commercial hard money loans, construction loans, bridge loans, cannabis real estate loans, and more. Some highlights of their business include:
- A wide range of short-term and long-term loan options to suit project timelines
- Financing available for various types of properties
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
2. Lantzman Lending
Lantzman Lending is a direct hard money lender that caters to the state of Nevada. Managed by Marc Lantzman and Justin Lantzman, they specialize in fix-and-flip, construction, commercial, probate, trust, and estate loans. Key features of their services include:
- Evaluation of experience level, cash reserves, credit-to-debt ratio, and ability to repay when reviewing deals
- Foreclosure-friendly policies
- Emphasis on equity as a crucial factor
- For fix-and-flip projects, they can finance up to 8% of the purchase price plus 100% of the rehab and construction costs
- Construction loans cover up to 100% of the loan amount, provided it does not exceed 65% of the property’s finished value
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
3. Stratton Equities
Stratton Equities is a prominent direct hard money lender nationwide, catering to real estate investors. Founded by Michael Mikhail in 2017 and backed by over five years of lending experience, Stratton Equities offers the following advantages:
- Loan amounts ranging from $100,000 up to $5 million
- Financing available for investment properties, including single-family homes, condos, townhomes, multi-family homes, commercial properties, mixed-use properties, offices, retail spaces, warehouses, and more
- Loan-to-value ratio of up to 75%
- Competitive rates starting at 7.25%
- Interest-only payments
- Loan terms ranging from 9 to 24 months
- Availability for foreign nationals
- No prepayment penalty option
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
4. HouseMax Funding
Although headquartered in Austin, Texas, HouseMax Funding provides nationwide financing for real estate transactions. Founded by Jeff Fetcher and Alex Morris, HouseMax specializes in asset-based loan financing for investors. Here’s what they offer:
- Minimum loan amount of $75,000
- Up to 75% lending based on after-repair value (ARV)
- Origination charge ranging from 1 to 3 points
- Three months of reserves required
- Direct lender approving loans internally and utilizing their private capital for funding
- Lending available in urban and suburban communities across all 50 states
- Goal to close loans in 10 days or less
- Specialization in fix and flip loans, construction loans, and rental loans
- Acceptance of multi-family and commercial properties
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
5. LendSimpli
As a hard money lender based in Tampa, Florida, LendSimpli offers nationwide lending services (excluding rural areas). Founded by Brenden Crampton and Matthew Davies in 2018, LendSimpli brings almost four years of experience in private lending for real estate investing. Here’s what they provide:
- Loan amounts up to $5 million for 1-4 unit properties
- Loan amounts up to $20 million for 5+ unit properties
- Lending for single-family homes (1-4 units) and multifamily properties (5-20 units)
- No owner-occupied properties
- Loan terms lasting 12-24 months
- Interest-only payments with rates starting at 8.5%
- Maximum loan to cost (LTC) of 90% of project costs
- Minimum credit score requirement of 660
- Encouragement for borrowers to have completed at least two transactions in the past three years
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
6. Easy Street Capital
Easy Street Capital, based in Austin, Texas, offers nationwide lending services with the exception of North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital boasts over six years of experience in the real estate investing domain. Here’s what you need to know about their hard money loans:
- Interest rates ranging from 6.9% to 10.9%
- Points ranging from 2 to 3
- A document fee of $1495
- No minimum credit score requirement
- Down payments of at least 10% are required
- Renovation financing available
- No prepayment penalties for fix and flip loans
When you’re ready to connect with a loan officer, use our form for a quick match with eligible loan programs based on your specific circumstances.
How Nevada Hard Money Loans Differ from Traditional Loans
Nevada hard money loans diverge significantly from traditional loans offered by major banks and credit unions. Unlike federally backed loans or conventional loans, hard money lenders in Nevada operate outside the regulatory oversight and rules associated with those loans. This flexibility benefits borrowers who wish to fund their investment properties without depleting their personal savings or encountering difficulties securing funds elsewhere.
An important distinction is that hard money loans are often based on the property’s after-repair value (ARV) or the value it will have after the lender completes necessary repairs. Consequently, the ARV is typically higher than the property’s value at the time of purchase, taking into account the renovations needed to enhance its livability and value. Traditional loans, on the other hand, primarily use the property’s current value to evaluate its worthiness for financing.
Nevada hard money loans also set different requirements for down payments and credit scores compared to traditional loans. However, lenders thoroughly evaluate the viability of the investment and the property’s value before extending loans. While competition for these loans is fierce, borrowers can generally rely on these lenders more than traditional loan providers.
It’s essential to note that though hard money loans are designed to be more accessible, they come with higher costs. Interest rates are often double or more than those of traditional loans. Investors must weigh these expenses carefully to ensure their investment remains financially sustainable in the long run.
Conclusion
Nevada’s real estate market offers lucrative opportunities and challenges alike. Hard money loans serve as a viable financing option for investors in this competitive landscape. By considering the top hard money lenders in the state, you can find the financial support necessary to pursue your real estate ventures in Nevada.
If you’re interested in exploring hard money lenders in other states, check out our comprehensive guides by clicking on your state below.
