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Hard Money Lenders in Indianapolis Financing Options

Best DSCR Lender Highest LTV 85% Capital Group

1. Purchase Money Only DSCR Loans
2. 0x30x12 Payment history is required
3. Minimum DSCR 1.26
4. 1-4 Family only (no condo)
5. No Short Term Rentals
6. First Time Investors - OK
7. Eligible in all states except HI and MS.
8. Minimum Fico: 720

Key Takeaways

• Local hard money lenders in Indianapolis provide fast funding and understand the local real estate market, aiding investors with projects such as fix-and-flips and bridge loans. They can be found through online platforms, networking with local real estate professionals, and attending real estate investment meetings.

• Hard money loans also known as bridge loans are short-term, asset-based financing options with higher interest rates than traditional loans, focused on property value rather than borrower’s credit history. They are suitable for real estate projects needing quick financing or for borrowers unable to secure traditional loans.

• When comparing hard money lenders, it’s vital to assess their reputation and track record, as well as the loan terms, conditions, and customer service they provide. Success stories illustrate how hard money loans can profitably fund residential rehabs and commercial property turnarounds.

 DSCR Loans Up To 85% LTV For Real Estate Investments

As a real estate investor seeking higher return on investment deals you will need to find a private lender that will help you build your portfolio and who can close fast on more profitable real estate deals such as Capital Group.

Hard Money Bridge Loan Programs in Indianapolis

Real estate hard money bridge loan programs provide short-term financing to real estate investors to help them bridge the gap between the purchase of a new property and the sale of an existing one, or to cover financing while awaiting long-term funding. These loans are typically used when an investor needs to act quickly on a property acquisition but does not have immediate access to the necessary funds. Here’s a breakdown of how these programs work:

Key Characteristics of Real Estate Bridge Loans

1. Short Duration: Bridge loans are short-term, usually ranging from a few months up to a couple of years.
2. High Interest Rates: Due to their short-term nature and higher risk associated with rapid financing, bridge loans typically carry higher interest rates compared to traditional mortgages.
3. Swift Funding: These loans can often be arranged quickly, allowing investors to take advantage of time-sensitive real estate opportunities.
4. Collateral: The loan is usually secured by real estate assets. This could be the property being purchased or another property owned by the borrower.

How They Work

1. Application and Approval: The investor applies for a bridge loan from a bank, private lender, or a specialty finance company that offers these types of loans. The approval process involves assessing the investor’s creditworthiness and the value of the collateral property.
2. Funding: Once approved, the funds are quickly disbursed, enabling the investor to purchase the new property.
3. Use of Funds: The investor can use the funds from the bridge loan to buy a new property before selling an existing one. Alternatively, the funds can be used to carry out renovations or improvements on a property to increase its value before a sale.
4. Repayment: The loan is typically repaid either from the proceeds of selling the old property or by refinancing into a more permanent, long-term financing solution.

Advantages for Real Estate Investors

• Flexibility: Bridge loans offer flexibility to investors who need to move quickly in the competitive real estate market.
• Leverage: Investors can leverage their current property assets to acquire additional properties.
• Opportunity Maximization: They allow investors to snatch up properties that might otherwise go to someone with immediate access to funds.

Risks and Considerations

• Higher Costs: The costs associated with bridge loans, including higher interest rates and possibly origination fees, can be significant.
• Dependence on Sale or Refinancing: Since repayment often hinges on the sale of another property or refinancing, any delays or issues in these processes can pose a risk of default.
• Market Variability: Changes in the real estate market could affect both the sale of the existing property and the value of the newly acquired property.

For real estate investors, understanding the costs, timelines, and risks associated with real estate bridge loans is crucial in determining whether this type of financing is appropriate for their specific situation.

Business Loan Types

Factoring Financing

Factoring functions similarly to a credit card where the bank or lender (factor) is buying the debt of the customer without recourse to the seller.  It is used to get cash quickly.

SBA Loans

SBA loans are guaranteed by the Small Business Administration (SBA) and range from small to large loans which can be used for most business purposes.

Leadership Team Since 1991

We provide commercial loans for business owners and commercial real estate loans with our private capital.  We also have access to 3,000 plus lenders who compete for your business, which allows us to offer you low competitive rates and save time in raising the capital needed for your venture.  Our clients are offered loans for Commercial Real Estate Loans, Asset Based Loans, Working Capital Loans, Equipment Lease Loans, Factoring, Trade Financing, Hard Money Loans, Merchant Financing, Small Business Administration Loans (SBA), Structured Financing, Unsecured Lines of Credit.

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