If there is one type of property that you need to invest in if you have the financial capability, then it should be real estate properties. Despite the fluctuations in the market and that housing bubble mishap in the past, investing in a real estate property is still the best investment you can make. Moreover, the current trend in flipping old and cheap properties to something amazing and functional can really bring success and financial returns. The real-estate market in New York is fairly stable, it has its lows and there was a time when the market was really down, but it has been able to bounce back after it, and there is no shortage of potential clients who are looking for residential and business spaces and most of them are in it for the long term.
Sometimes a prime property that you have been eyeing goes into the market and you do not have the funds to purchase it right then, and applying for bank loan is not feasible, then NYC hard money loans is the answer. Moreover, there is a huge demand for real estate properties in New York and newly listed properties always gets sold fast like pancakes. So, if you want a property that is made available at present, then make an offer and apply for a hard money loan in the same breath.
Hard money loans can approve as much as 2 million for a single property with 3 to 5 days processing and release, for emergency purposes, you can even get it the same day you applied for the loan. Applying for bank loans can take too much time, that by the time the loan is approved, the property had been sold to someone else. Moreover, even if the interest rate for hard money loans are higher than what the bank offers, the whole process is much faster and is not dependent on past credit scores or the certificate of occupancy of the property.
Why You May Need Hard Money Loans
NYC hard money loans are available to those who would like to purchase a real-estate property investment in New York City and neighboring counties but lacks the money to make the offer or purchase it. Now, one would think it is brazened to consider buying a property when you do not have the funds for it, and this is why these loans are called hard money, since it really is in the form of hard cold cash and not some credit or bond. The hard money loans are only available for the purchase of real-estate property investments, meaning, you cannot use the loan to buy a residential property that you will live in. the properties that should be purchased has the potential to make more money or realize profits, which is why it is called real-property investments.
So, if you are in the business of flipping houses or properties, or renting out apartments, buildings, commercial spaces, storage areas and others, then you can qualify for an NYC hard money loan. You will also need hard money loans if you have bad credit ratings, it is a reality that a bad credit score does not reflect everything about the creditor, as things may happen beyond the control of the individual. Even with a bad credit rating, you can still apply for a loan subject to the income probability of the property you are going to buy. Hard money loans are dependent on the earning potential of a property and not on credit scores. You also need a hard money loan if you do not want to purchase the property with your name for whatever reason it may be. Only those registered with LLC can apply for a hard money loan. Which is really not something to be alarmed at as it is fairly easy to accomplish. Sometimes you need a hard money loan since the banks would not touch the property as it is deemed unlivable, or because it lacked the needed permits. Again, the hard money loan looks into the current market value of the property and the possibility that it can be renovated, then rented or sold.
How To Apply for Hard Money Loans
There are a number of local lenders like those that offer NYC hard money loans in the city, and your preference will depend on your personal experience with each. Thus, it is a better option to contact all of those lenders to inquire about their terms and procedures, always choose the best one that you most feel comfortable and connected with. After which, you can then apply for the loan amount that you need to close the deal with, at this point the lender will probably ask for documents pertaining to the property, an ocular inspection may also be done to verify the claims that you used in the application process. The lender will then determine the amount due to the property taking into consideration its potential to generate income through renting or selling it.
The loan amount released can range from eighty to one hundred percent of the value of the property. This can all be done in a matter of three to five days, however, there have been cases when the loaned amount was released on the same date especially if the purchase has extenuating circumstances. After which, the lender will monitor your progress in making sure that the property realizes profits or generates income. Some lenders will offer short-term repayment schemes like a year or twelve months, some also offer up to three years which is the longest among local lenders. Direct lenders are much better as they deal directly with the applicant and there is no need for brokers.
Moreover, getting a local lender would mean that they are well-acquainted with the local real-estate market and how fickle it can be, as well as providing support and insight for renovation needs, consultants and even contractors. Getting a hard money loan can be daunting at first, but knowing that you will be able to pay it off while having your own investment property is enough motivation to make this a reality.