Hamilton is the second-largest city in the Greater Cincinnati area, and the 10th biggest city in Ohio. With a population of 63,399 people, Hamilton is an industrial city that is delving more and more into the arts. Currently, Hamilton has a nickname as the “City of Sculpture,” which the city gained in 2000. It’s also named after the famous Alexander Hamilton and is known for Pyramid Hill, a sculpture park with significant green space and contemporary art.
It’s a suburb for those who may work in Cincinnati but may be looking to commute from outside the city, but raise their kids with good public schools
According to Niche, Hamilton is a Cincinnati suburb with a suburban feel, where most people live in their homes. It is very affordable, like the rest of Ohio. The median home value and median rent within Hamilton are well below the national average.
Right now Hamilton is a seller’s market, which means prices tend to be above the listing price and sell fast. It means demand is outpacing supply in Hamilton. In January of 2022, the average sale time was 13 days.
Hard money loans might be the best way to invest in real estate in Hamilton. The biggest advantage of hard money loans is their closing speed, which can be a couple of days, as opposed to the more or less month it takes to get approved for a mortgage. In a competitive seller’s market like Hamilton, this is especially advantageous because time is money.
These loans are also known as last resort loans, but they can be approved so quickly because they’re based on the property, not the credit score of the borrower. In particular, hard money loans are based on the after-repair value of the property.
Since they’re based on the property, the property is the asset and collateral. If a borrower defaults on their loan, hard money lenders take on the property, which means real estate investors have to hope the property can pay off the hard money loan.
This means hard money loans are riskier than traditional mortgage loans, and this shows in their terms and rates. Hard money loans have lower LTV ratios than traditional mortgage loans, which means they require larger down payments. You can usually expect LTV ratios within 70% to 80% with hard money loans.
They also have higher interest rates than typical mortgages. The average mortgage has an interest rate of just under 4%, while the average hard money loan has an interest rate of 8–15%. Hard money loans also have shorter repayment periods than traditional loans. They need to be paid off within a year, while traditional mortgage loans can take 15 to 30 years to be paid off for homeowners.
As you can see, hard money loans can be very hard to pay off if the real estate investment does not pay off. You should have a good strategy for paying off these loans, especially since not every lender is trustworthy. A lot of hard money lenders might put on extra fees like underwriting costs, origination fees, and closing costs.
At Hard Money Lenders IO, we have you covered in finding the best hard money lenders in Hamilton. Hamilton is a competitive market, and we’re here to pair you with the best real estate investing partners in your journey.
