Noblesville is is the county seat of Hamilton County, Indiana, and known as “The Heart of Hamilton County.” It is the 14th largest city in Indiana and is located very firmly in the center of the city. Noblesville is home to the Ruoff Music Center, a major outdoor music venue, and Noblesville also has a “hipster” reputation revolving around the arts and concerts.
As a residential area, Noblesville is considered one of the best suburbs to live in Indiana. It has great schools, housing, and is considered great for families on Niche, receiving an “A” overall rating to live. Noblesville has a population of just over 63,000, and is considered one of the best places to live in Indiana. It has a huge suburban feel and has a lot of restaurants and parks. Noblesville is home to many young professionals, and can be more expensive than the rest of Indiana with a median home value of $209,100 and a median rent of $1,039.
Noblesville is currently a seller’s market, which means demand is rapidly outpacing supply in the city. It means prices are higher and homes are selling faster, and it also means real estate investors might get into bidding wars and have to put in very fast offers to be competitive with other investors.
Hard money loans might be the answer for real estate investors in Noblesville. Hard money loans are also known as last resort loans or short-term bridge loans, but they are mostly used for real estate transactions. Hard money loans are known for their fast approval rates, which is especially advantageous in a competitive seller’s market.
Hard money loans can be approved within a couple of days, which are much faster than mortgages, which can take a month more or less to be approved. Hard money loans can be approved so quickly because they’re based on the property and the after-repair value of the property. They are not based on credit score and the financial standing of the applicant, despite having minimum credit scores of 600 to 620.
This means hard money loans have inherent risks for the lender, since the property is both the asset and the collateral. If a borrower defaults on a hard money loan, the lender takes on the property, which is different from a traditional mortgage loan. In mortgages, if a borrower defaults on a loan, there are foreclosure proceedings.
This means hard money loans have higher interest rates than traditional loans. Compared to mortgages, which have rates of just above 4%, hard money loans have interest rates of 8–15%. Also, hard money loans have shorter repayment periods and lower LTV ratios. This means hard money loans need higher down payments and need to be paid off quickly. It can be very hard to pay off a hard money loan if the real estate transaction does not pay off.
It’s important to be selective when trying to choose a hard money lender. Not every lender is trustworthy, and some might tack on extraneous fees like closing costs, underwriting fees and origination fees. Other hard money lenders might not be reliable because they do not communicate fees upon signing.
At Hard Money Lenders IO, we have made a list of the best hard money lenders in Noblesville, so you don’t have to. These are the best financing partners for your real estate investing journey.