Fishers is a city in central Indiana with a rapidly growing population. It is located in Hamilton County, and Fishers is seeing a rapid rise in out of state investment companies coming into the city to buy homes and raise rental prices. This has become such a trend that Fishers Mayor, Scott Fadness, lamented Wall Street investors preying on appreciating home values in Fishers.
However, this is happening because Fishers is a very nice place to live with a low cost of living. It is regarded as not only one of the best places to live in Indianapolis but one of the best places to live in America. It has an A+ rating on Niche and is widely regarded as the second-best place to live in Indiana. It is a suburb where most people own their homes and is a location that is home to many young professionals.
The public schools in Fishers are excellent, as is the night life and the quality of the suburb for raising a family. Right now, home values in Fishers are appreciating, and the median home value and rent are both above most Indiana cities.
Not only that, but Fishers is only a short commute away from Indianapolis as a suburb of the city. Right now, Fishers is a seller’s market, which means demand is outpacing supply in the suburb. Homes are selling for more expensive prices than listing, and the prices in the city tend to be higher and homes tend to sell faster.
Real estate investors in Fishers may benefit from hard money loans. Hard money loans are loans mostly used for real estate transactions, and they’re mostly used for fix and flips, long-term rentals, repairs of distressed properties, and more. They’re also known as last resort loans, and their biggest advantage in a seller’s market like Fishers where investors can get into bidding wars is their very fast speed of approval.
Hard money loans can be approved within a couple of days to give an investor fast money for a real estate investment. By contrast, a mortgage can take more or less a month to be approved. This speed of approval is essentially money in real estate investing, and the reason hard money loans can be approved so quickly is because they’re based on the property and the property’s after repair value, not the credit score of the borrower and other elements of the borrower’s financial standing.
If a borrower defaults on a mortgage, there’s a lengthy foreclosure proceeding that can be very lengthy and costly to the bank. However, if a borrower defaults on a hard money loan, the lender takes on the property. This can be profitable to the hard money lender, but it can also be extremely risky.
These risks manifest themselves in the rates and terms of the loan. Hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods compared to mortgage loans. In particular, hard money loans have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios much lower than mortgages. This means hard money loans are more expensive and can be more difficult to pay off if the real estate investment does not pan out.
It’s also important to find the best hard money lender possible. At Hard Money Lenders IO, we have compiled a research-backed list of the best hard money lenders in Fishers.