Indianapolis is the most populous city in Indiana, home to the Indianapolis Colts, Indiana Pacers, and much much more. According to Jeff Rohde on Roofstock, Indianapolis is ranked as the fourth-best housing market for growth in 2022, and housing sales in the area are projected to increase by nearly 15% in 2022.
Demand is absolutely surging in Indianapolis right now due to the number of real estate investors coming from out of state, which is making Indianapolis at the top of a list of markets that still have affordable properties and high returns on investment.
Simply put, Indianapolis is a place many people want to live. It has a thriving economy, entertainment scene, coupled with a midwestern charm. Properties are providing quick cash flow for investors, and properties are also expanding very quickly. Rental demand is absolutely exploding in Indianapolis right now, which is evident from a population growth of 8% within the past ten years.
Suburbs around Indianapolis are also seeing exploding population growth. While population growth within Indiana itself is slowing, Indianapolis’s population is projected to soon be the primary source of population growth in the state. Technology growth is jumpstarting the economy and leading a growth of migration of entrepreneurs, and this shows through the housing market of Indianapolis being regarded as a “housing market to watch” by Forbes in 2021.
According to Niche, Indianapolis has a population of over 860,000, and the city itself is considered one of the best places to live in Indiana. It offers people a suburban feel where many people own their homes. There are many bars, restaurants, and more that cater to young professionals. The median home value of Indianapolis is $137,000, while the median rent is $892, which make Indianapolis extremely affordable compared to the national average.
Right now, Indianapolis is a seller’s market, which means demand for housing is outpacing supply. That means buyers need to put in quick, fast offers to be competitive in buying housing in the state.
Hard money loans might be the answer to real estate investing in Indianapolis. Hard money loans have the huge advantage of a very fast speed of approval, which means they can give money in a couple of days and be approved that quickly. By contrast, traditional financing in mortgages can take a month at least to be approved.
Hard money loans are also known as last resort loans or short-term bridge loans, but they’re mostly used for real estate transactions. They are used for fix and flips, repairs of distressed properties, and long-term rentals. Hard money loans are important for real estate investors because of their fast speed of approval, but also their flexibility compared to mortgages.
The reason hard money loans can be approved so quickly is they are based on the property as the asset, not the credit score of the borrower. The credit score is the collateral, which means if a borrower defaults on a hard money loan, the lender takes on the property, which is very different from the foreclosure process of a mortgage. This also means hard money loans have significant risks as well, including a lower LTV ratio, higher interest rates, and shorter repayment periods than traditional loans. It’s important to find a trustworthy hard money lender to give the best rates and terms.
At Hard Money Lenders IO, we have made a list of the best hard money lenders in Indianapolis. Look no further for a great financing partner for your transaction.