I was having dinner with a friend down by the river recently and a good conversation about real estate investing started up. At one point, he asked me what I needed. I told him the basics: the most important thing anyone needs is a way to get hard money fast to jump on the leads opening up all over Cincinnati. That was what any real estate investor needs the most, and I was about to tell him just how to get it. Then I realized that he was just on his way to the bar and asking if I needed anything.
But, my point holds true: everyone needs money. This is especially true if you’re a real estate investor here in Cincinnati, Ohio. I’ve been here for years and have seen the city grow along the river and through the hills. The city is more than just Skyline and Newport on the Levy. A smart investor wants to be a part of that. But, you need money to make it happen.
Finding the Best Hard Money Lender in Cincinnati Ohio
That’s where a hard money lender comes in. A hard money lender is a private company that does asset-based lending, which is especially helpful for financing a fix and flip. Buying, rehabbing, and selling distressed houses often means going beyond what makes banks comfortable. A lot of times, due to our credit and our need to spend before cash flows in, it’s hard to qualify for traditional loans, anyway.
A hard-money lender, however, can get you cash fast so you don’t lose out on an investment opportunity. They look at your deal and judge it on its merits. A distressed house with a lot of upside after a rehab is right up their alley. But, it’s important to get a loan from a place you know will do you right.
When choosing a hard money lender to run my deals by, I look for a few things.
1. Reputation. Do other investors trust them? Are they good to work with? Are they there when I need them?
2. Knowledge. Do they know the industry? Do they understand what makes a good investment? Do they understand why I am a good investment?
3. Funding speed. How quickly can I get cash? Can I get it fast enough to buy the house I am eyeing?
4. Rates. OK, this is probably the most important one, but it comes from the first two. Are they going to give me the cash I need at a price that makes sense? That matters more than anything.
With that in mind, here are three of my favorite hard money lenders in Cincinnati that can fund your flips.
One of the nice things about working with RCN Capital is that they understand you have to buy houses in less-than-peak condition in order to realize reasonable returns. They look at the deal you have in hand, analyze its potential, and offer you a rate based on that. They’ll also take a look at how many flips you’ve done. If it is a good number, you’ll get a great loan.
They’ll provide funding for up to 90% of your purchase as well as 100% of the rehab. You can also get a rate as low as 7.99%, if you have a good record. But, even newer investors can potentially get great rates—they count you as having a good record with three deals under your belt. That’s pretty good for investors in just about any position.
Sherman Bridge Lending
Sherman Bridge Lending has been helping Cincinnati investors for years. They are a little more strict than other lenders, requiring a minimum credit score of 600 as well as $30,000 cash on hand. But, if you have that, and you have a good deal, they are on your side. Sherman Bridge can get you a lot of cash, too: they start at $75,000 and can go up to 70% of the ARV and 85% of the purchase price.
They are quick, too—you can get approved in a day once they have all your info and get the cash you need in as little as 7-10 days because they know you need to be competitive. And, they also are flexible, giving you a 12-month term for a fix-and-flip and 36 months for a buy-and-hold. It’s that understanding of the industry that really makes a difference.
Finance of America
Finance of America has a fairly unique program that lets you start small and quickly work your way up. They are fairly standard, in that they will finance you up to 90% of acquisition and 100% of repair costs, up to 75% of ARV. Rates as low as 6.75% are a good incentive as well.
But what sets them apart is the range of their loans, which range from $50K to $2 million. That’s a wide range with a genuinely low floor. They also have exposures for multiple properties, so that you can borrow on multiple loans at the same time—up to $10 million. Even if you have zero experience, you can borrow up to $500K.
So how do you choose? Well, you can let them do the work.
Make Hard Money Lenders Work For You
The internet makes things easy. When I started, I’d have from go from lender to lender and talk to people about loans so I could understand all their terms. Now, you can go to each website, put in your info, and wait for them to call you. But, there is an even easier way that I discovered when I became an independently owned and operated HomeVestors® franchisee.
HomeVestors has a proprietary software platform, UGVilleSM for easily accessing some of the best hard money lenders nationwide. When I find a deal, I put in the information, and then I get offers from Cincinnati hard money lenders. And, then I get to choose.
This has the effect of making the lender work for my business, instead of me going there hat in hand. I can choose the lowest rate or the highest dollar amount. It means that I get to find the deal that’s right for me. That’s important in a market like Cincinnati. It helps me stand above.
If you want to be able to take advantage of the real estate investment opportunities here, the thing you need most is a reliable hard money lender in Cincinnati. Access to UGVilleSM is limited, though, so request information today.
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