Gary is a city in Lake County, Indiana. It is named after Elbert Henry Gary, who was the chairman of the United States Steel Corporation. It was known for its steel mills primarily, and also home to Michael Jackson and the Jackson Five. Gary is a town with a population of just over 76,000 and is in Lake County, Indiana. Most people in Gary own their homes, and residents in Gary tend to be liberal. There’s a median home value of $66,100, and a median rent of $785.
While Gary does have a negative reputation, it is known for being very close to Chicago. As a city in northwest Indiana, Gary is very close to Chicago and within driving distance to the city. The suburbs around Gary are especially part of the Chicago suburban area. This has led to a surge of demand in Gary and the surrounding area.
Gary is only 25 miles from Downtown Chicago. The economy is diversifying its tourism and service industries, and Lake County as a whole is the second-most populous county in Indiana. There’s been a huge influx of Illinois buyers looking to buy a home in Gary.
Gary is currently a seller’s market. That means demand is outpacing supply in the city, and homes are selling for higher prices and faster. This means bidders have to put down offers very quickly to be competitive in Gary these days.
Hard money loans might be the answer for real estate investing in Gary. Gary is a competitive seller’s market, so these hard money loans have a huge advantage of very fast speeds of approval. Hard money loans can be approved within a couple of days, whereas traditional mortgage loans can take more or less a month to be approved. Hard money loans can be approved so quickly because they are based on the property, not the credit score of the borrower. Credit still matters — hard money loans often have minimum credit scores of 600 to 620.
However, hard money loans are based on the property, not the financial standing of the applicant as the basis of the loan. Hard money loans are based on the property’s after repair value, and they can be approved so quickly because hard money lending is more unregulated compared to traditional lending. The property is both the asset and the collateral, which means if a borrower defaults on a hard money loan, the lender takes on the property, whereas if a borrower defaults on a mortgage, there’s a foreclosure.
This means there are significant risks to go along with hard money lending. Not every lender is trustworthy, but most hard money loans also come with high interest rates of 8–15%, which are much higher than the interest rates of mortgage loans, which are just over 4%. Hard money loans also have lower LTV ratios and short repayment periods compared to traditional loans — hard money loans also have repayment periods of more or less a year, compared to traditional loans which have repayment periods of 15 to 30 years.
To find great hard money lenders, it’s essential to be wary of hard money lenders who charge extraneous fees like underwriting fees, closing costs, and origination fees. It’s important to only trust good and reputable lenders.
At Hard Money Lenders IO, we have you covered in finding the best hard money lenders in Gary. Look no further for a good financing partner for your real estate transaction