More and more real estate investors seek the support of the hard money lenders in South New Jersey for rehab projects in the area. That is because most of them have come to the conclusion that hard money loans are the best alternative for completing the work and getting their properties on the market as soon as possible.
That is because hard money loans are:
- A source of funding for real estate projects covering from a few months to a number of years;
- Secured by the quick sale value/or completed value of the property;
- Flexible, being available to real estate investors seeking funding for ongoing renovations or staging, to commercial property owners and other business-type projects;
- Accessible, depending more on the value of the property rather than on the applicant’s credit score and income;
- Fast, the approval process taking between one and two weeks, depending on the applicant’s situation and on the policy of the lender.
These loans are not for a homeowner who is residing on the property, as they have a rather high interest rate and they can get quite costly on long term. Hard money is a term used in history as money that has a real value, such as gold, rather than paper declared by a government to be of a specific dollar amount.
In the case of those who turn to the hard money lenders in South New Jersey for rehab projects financing, the “gold” of the loan is the property itself. A lender will typically determine the loan to value or LTV of the property, which is somewhere between 60-70% of the current market value, to base the loan off of.
In order to decide if a hard money loan is the best way to finance your rehab project, it is important to know what to expect and what to look for. You will be dealing with the lender frequently throughout the loan period, so you must choose one that is reliable and easy to work with.
Then, hard money loans are a quick way to get your project going and finished in a timely manner, but for a cost, so you expect to pay a higher amount upon completion. Since time is money in the real-estate investments business, a hard money loan should save you a lot of that precious time and be worth the cost.
If you have decided to contact one of the hard money lenders in South New Jersey for rehab projects financing, try NLDS Corp, the best rated lender in the region, and you will find all the information and support you need.