Here’s a true story. When we were little kids, growing up in Illinois, my dad told us that Cleveland didn’t exist. It was a fictional place, like Star Wars or something. He did it just to be goofy, and it was funny, but it took me years to understand fully that Cleveland was a real place. So, it is to my consistent surprise that I’ve spent my entire adult life in this city, making it my home and building my real estate investing business.
So, Cleveland is real, and its real estate investing market here is real as well. In fact, it’s a good—one of the sneakiest great markets in the country, marked by stability and consistent growth. While there is always uncertainty, the fundamentals of the Cleveland market are strong.
Being strong doesn’t mean it is easy, though. Having the right hard money lenders here in Cleveland, Ohio is crucial to reaching your investing business goals. There are a lot to choose from and they aren’t all created equal. There’s a few that I like to work with. And, I insist, are 100% real.
The Importance of the Hard Money Lender in Cleveland Ohio
A couple of years ago, Forbes ran an article that said Cleveland might become one of the new tech hubs in America. It promoted our city’s growing biotech, fuel cell, and other tech sectors. That’s a surprise to people who only know Cleveland as a brawny Rust Belt manufacturing city. Would this be the new Cleveland?
It is, and it isn’t. Cleveland has seen steady growth over the last 20 years but still doesn’t feel dense. Our manufacturing sector continues to grow. In fact, employment in all areas rises as more people move in. After all, new tech jobs are bringing in younger people with more disposable income. They are looking to rent first and then buy after a few years. That means whether you are buying investment property to become a landlord in Ohio or are looking to quickly flip, you have a chance at achieving your goal.
But, to buy a distressed house quickly, you need a hard money lender so you can get cash quickly. And, not just any lender will do. I always vet hard money lenders before bringing my deal to their table. Here’s the basics that you should expect, too.
- An understanding of the local market. You are essentially speculating in real estate. Some institutions don’t like lending on distressed houses because it doesn’t match their risk-averse outlook. You want a lending partner who can analyze the potential of deals with you.
- Rates that work for your level of experience. Most lenders give different rates depending on your investing track record. These all vary, so you want one that matches what you need.
- A partner who acts fast. The market in Cleveland isn’t easy. You want someone who can get cash in your hands quickly before you lose a deal.
With that in mind, here are three that you can rely on.
ResCap is a national firm that specializes in hard money lending. To say that they know the industry is an understatement. They get what you are trying to do, and their employees actually work with you like a partner.
They are an interesting lender because they offer fixed rates regardless of your experience. It’s 10% no matter what. That kind of certainty can be a relief, especially when you need to act fast. And, the best part is that you can generally get approval in two days for closing in approximately 14 days.
Finance of America
This is a really good lender if you are inexperienced, and a great lender if you are experienced. If you are an experienced investor, you can borrow up to $2 million with rates starting at 6.75%. These loans are fixed for 18 months, which gives you a good window for larger projects. If you aren’t experienced, you can borrow up to half a million. A nice benefit is that you can borrow as low as $50K, which is lower than most places.
Finance of America is able to accommodate just about every kind of investor looking for investment properties in Ohio. They have a different program for rentals, especially for investors who don’t have a huge portfolio. They boast not doing income verification, which is great, because a lot of times in this business you are cash-strapped. They get it. You shouldn’t have to be rich to make money.
Patch of Land
OK, so this Cleveland, OH hard money lender is a lot different. It’s crowd-funded real estate investing. What does that mean? It means you aren’t borrowing from one institution: you’re borrowing from hundreds or even thousands of people.
You apply just as with other lenders and can be pre-approved. Rates start as low as 7.99% and range anywhere from $100k to $5 million. There is a central approval process, and then the money gets filled in by people who are essentially investing in your success.
I know some people who find this strange. I don’t. It’s actually pretty old-fashioned, just done with modern technology. And I do mean modern: it’s fast. You can get approved in as little as 7 days.
A Fast Way To Get Hard Money
These are just three lenders I like and trust here in Cleveland. I’ve worked with all of them—and many, many more. The thing is, every project is different. When I find a house I want to buy, I can’t just turn to ResCap because I got a good deal before. Maybe next time Patch of Land will give me the right terms.
All of that takes time. But the process became much faster when I became an independently owned and operated HomeVestors® franchisee. HomeVestors’ proprietary hard money lending portal connects me with lenders across the country via my iPad. All I have to do is enter the details of my potential deal into the portal and I am flooded with competing offers from some of the best hard money lenders around Cleveland, Ohio.
Rates, terms, limits, and more—all delivered right to me. Instead of me asking lenders for money, the lenders are competing for my business. I get to choose the terms that work best for me without applying to multiple sites. It’s easy, and it gets me the loans I need with the terms I want.
If you want this Cleveland hard money lending potential unlocked, request information about becoming an independent franchisee today. It’s an opportunity as real as Cleveland.
Each franchise office is independently owned and operated.