Akron is the famous home to LeBron James, as well as the fifth largest city in Ohio. Located in western Ohio, Akron is a city about 40 mile away from Cleveland. While Akron is not as big of a city as Columbus or Cleveland, Akron is a smaller town with significant potential. Home to over 200,000 people, Akron is known as the “Rubber Capital of the World,” and it is also a huge metropolitan area.
According to Norada Real Estate Investments, Akron is a rapidly appreciating market after hitting all-time lows recently. It. isone of the best cities for young professionals in America, with a terrific nightlife and diversity. It has a suburban feeling with a lot of bars, coffee shops, and parks. Like the rest of Ohio, it is a very affordable city where many people both rent and own their homes. It is a city with one of the lowest costs of living in America.
Right now, Akron is a strong seller’s market. That means demand is outpacing supply in Akron, and there are a lot of people who want to buy homes within the city and the surrounding metropolitan area. It is a very competitive real estate market where real estate investors need to put in offers very quickly.
Hard money loans might be the answer for real estate investing in Akron. These are otherwise known as last resort loans or bridge loans, but hard money loans are predominantly used for real estate transactions. They are used for fix and flips, construction projects, long-term rentals, and more.
In a competitive seller’s market, the biggest advantage of hard money loans is their fast speed of approval, Hard money lenders can, most of the time, approve hard money loans within a couple of days, which is especially advantageous compared to traditional mortgage loans, which usually took at least a month to be approved.
The reason hard money loans can be approved so quickly is that they use the property as collateral. They are based on the after repair value of the property a real estate investor wants to invest in, not the credit score of the borrower or the financial standing of the applicant.
To be clear, credit still matters in the sense that most hard money lenders still have minimum credit score requirements of 600 to 620. However, since the property is collateral, if a borrower defaults on a hard money loan, the lender takes on the property.
The risks of a hard money loan are also present — they have higher interest rates than traditional mortgage loans, lower LTV ratios, and shorter repayment periods.
They have interest rates of 8–15% and need to be paid off within a year, so a lot of real estate experts suggest leaving hard money loans to the pros. Hard money loans also have LTV ratios of 70–80%, which means investors have to put down higher down payments. It’s possible for new investors to also get hard money loans, but it’s especially difficult since most hard money lenders require a track record of successful real estate investments. Foreign nationals might also have a hard time getting hard money loans due to documentation requirements, but some do lend to foreign nationals.
At Hard Money Lenders IO, we have found the best real estate investors in Akron. Look no further for the best partners for your real estate investing journey.