Canton is a city in northeast Ohio, and is the eighth biggest city within the state. It is known as a heavy manufacturing hub due to all the railroad lines crossing the city, but that has died down throughout the course of the late 20th century. The decline of Canton’s manufacturing industry has coupled with the burgeoning service economy in the city, and Canton is notable to tourists for being home to the Pro Football Hall of Fame and the birthplace of the NFL (National Football League). Former president William McKinley also used Canton as the location for his pivotal 1896 presidential election.
Recently Canton has also diversified into the arts and has become more attractive for young professionals. Most notably, in 2016, the city started allowing the open consumption of alcohol, one of the first in Ohio.
Canton is, according to Niche, a city with a dense suburban feel where many people rent their homes. It has a population of just over 70,000, and right now, it is a very strong seller’s market. That means demand is rapidly outpacing supply in Canton. It’s important to put a very competitive offer in place to be able to invest in real estate in Canton.
Hard money loans might be the best way to invest in real estate in the city, especially since hard money loans have the advantage of having very fast closing speeds, especially compared to traditional mortgage loans. Hard money loans can be approved within a couple of days. By contrast, mortgage loans might take months to be approved, since they depend so much on the credit score of the borrower and the financial standing of the applicant.
Hard money loans can be approved so quickly because they’re based on the after repair value of a property, not the financial standing of the applicant. They use the property as collateral and as a tangible asset. If a hard money loan is defaulted on by a borrower, the lender owns the property. This is very different from a foreclosure, where if a borrower defaults on a mortgage, proceedings can be very costly and lengthy.
Because of the added risk of hard money loans, they have rates that are very different from mortgages. They have higher interest rates than mortgage loans, which usually have mortgages of 4%. Hard money loans have average interest rates of 8–15%. They also have lower LTV ratios than mortgages, which means the borrower needs to put down a greater down payment than they do for the mortgage. The lender needs to see the investor has some buy in to the hard money loan as well. Hard money loans also have much shorter repayment periods than traditional loans, which usually have 15 to 30 year repayment periods. Instead, hard money loans have repayment periods of more or less than a year.
You have to be careful about which hard money lender you select, since some have reputations as “loan sharks” and not every hard money lender is trustworthy. In fact, not every hard money lender is transparent about fees upon signing, like underwriting fees or closing costs. Hard money loans can also not be accessible to everyone, including foreign nationals and new investors, because of documentation requirements or the necessity of previous investing history.
Hard Money Lenders IO has you covered in finding the best hard money lender in Canton to help you compete in a very competitive seller’s market. Look no further to find the best lender possible.