While nearly two-thirds of Americans own real estate, lending standards for investing in real estate make it so that only a small amount are involved in investment projects. Hard money loans, or bridge loans, are the investment tool that allows people to own real estate and homes that aren't their primary residence. Even with the help of an experienced local realtor in Ohio, applying for one of these loans can be challenging for first-time investors.
Hard money loans are great for investors who anticipate a short turnaround on the value of their property, as the terms are typically a fraction of the length of a standard mortgage. It can be harder for investments with high overhead because the interest rates are higher than normal mortgages. Because investors need to earn their money back over a shorter period, they charge anywhere from 6% up to 20%.
Investors with poor credit appreciate these loans because creditworthiness isn't a part of what lenders look at when determining who is qualified for a loan like this. They look at the potential property's “after repair value” once renovation is done. Here are five of the best hard money lenders in Ohio to get your next investment project off the ground.
1. ReCasa Financial Group
This Columbus-based lender has grown over the years to serve nine of the biggest markets in the Midwest and East Coast including Illinois, New York, South Carolina, and Pennsylvania. Finding a lender based in Ohio is helpful for Ohioans looking to invest, as they're more likely to understand the potential value of property in the region.
The terms of their loans are shorter than many other lenders but that's because they're focused on the fix-and-flip industry. Their terms are just 9 months but the amount that applicants can file for a range from $60,000 to $750,000. ReCasa Financial Group will fund the final value of the home up to 75%.
While most hard money lenders don't look at credit, they look for applicants to have at least a 680 rating before they'll offer a loan. With low interest rates starting at just 9%, they can afford to be picky. They will fund single-family or multi-family properties, office properties, retail property, or mixed-use industrial space.
2. AmeriCommercial Capital
Based in Oxford, Ohio, AmeriCommercial Capital is a private money lender focusing locally on the region around Cincinnati and Cleveland. The bulk of their portfolio is in commercial hard money lending around hotels, industrial buildings, medical facilities, or undeveloped land.
AmeriCommercial Capital starts their lending at a value of $1,000,000 meaning they're more likely to want to lend for a large commercial apartment complex than a single-family home. They loan at conservative loan-to-value rates, given they work with such large ticket properties.
If you have a project in the medical, self-storage, or hospitality sector, AmeriCommercial Capital is the local Ohio firm you want to work with. If you're working with an experienced local agent to find land, ask them to help you construct your presentation toward the interests of this lender.
3. Gelt Financial
Over the last 30 years, Gelt Financial has grown from a Florida-based investment company to a nationwide hard money lender. They offer commercial and non-bank mortgages to applicants all across the country.
Gelt Financial lends in amounts ranging from $100,000 to $20,000,000, meaning that if you have a large commercial project with a huge potential return, they're the ones to call. With the help of an experienced local agent, you can apply for a major commercial project or just the renovation of a small single-family home.
They lend to applicants all across Ohio who are interested in hotels, self-storage, mixed-use, or industrial properties. With such a wide range of services and rates starting at 8.5%, they're a great option for first-time or long-time hard money investors.
4. Layla Capital
Based in New York City, Layla Capital serves the most lucrative markets in the U.S., including Ohio. They are focused on the east coast but have worked with investors in Ohio. Their loans start at $750,000 and go up to $15,000,000 for a property that includes multi-family units, mixed-use properties, condos, and co-ops.
Layla Capital is proud to take risks and help first-time investors. They will consider applications on acquisitions, construction, lease-up, foreclosure, and even bankruptcy bail-out. With loan rates starting at just 8% and terms that stretch up to three years, they're a reliable investor who privileges the goals of their customers.
5. Global Capital Partners
Global Capital Partners is a large lender that has the capital to take on major projects all across Ohio. If the other lenders on this list can't see the earning potential of your commercial or industrial investment, Global Capital Partners will.
Their loans range from $500,000 up to $50 million. When you're looking for a hard money loan from a lender who you can create a long-term partnership with, look no further. They have relationship managers, brokers, and underwriters who know the details of Ohio state laws in surprising detail.
They go beyond commercial investments by lending to applicants looking for help with multi-family units, apartment buildings, single-family properties, or mixed-use locations. With the help of a senior broker from Global Capital Partners, you could start a lucrative relationship that lasts for decades.
Before You Choose a Hard Money Lender in Ohio
Before you look for the right lender to fund your next investment, start with an experienced local realtor who knows the market you're investing in. Working with a Clever Partner Agent gives you access to a comparative market analysis with no obligation to sign. You also get the ability to work with an agent who can help you qualify for a rebate of $1,000 or up to 1% of the final price of any property over $500,000.
Contact us today to be paired with an experienced local realtor who can help you find the right lender.