The hard money lenders New York story begins with the Uniform Commercial Code’s state-by-state adoption process that was introduced in 1952. This series of articles began to standardize the process by which security interests could be created in a property, a process called attachment.
This attachment process, now regulated as a secured transaction, offered lenders standard procedures by which they could agree to the use of property as collateral. A pioneer of this form of transaction was James Talcott, an early 20th century New York businessman whose many ventures included a commercial financing unit, appropriately named James Talcott, Inc.
The use of personal property as collateral for loans is as old as finance itself. However, the standardized process by which this instrument could be used to secure loans quickly and without lengthy credit checks had only just appeared. Talcott and his clients took advantage of this standardized process to finance many of the construction and rehabilitation projects standing at the base of the New York we know today.
Soon after, Talcott’s competitors entered the new market for asset-based, high-collateral real estate loans. These competitors, with Walter Heller, CIT, and A.J. Armstrong being the most powerful, secured the foundation for a financial market that would keep a steady corner of the local industry for decades to come.
The Rebirth Of Hard Money Loans And The Growing Success Of The Hard Money Lenders New York
The rhythm changed in the 1980’s and 90’s, when more and more companies began using hard money loans for their commercial real estate projects. Around the same period, real estate investors saw in these loans the opportunity to make more money and began using them to build, rehab and stage properties before putting them on the market.
The interest in hard money loans has been growing constantly ever since. One reason for this growth is the series of advantages these financial instruments bring compared to bank loans. Fast, easily accessible, unconditioned by income or credit score and covering high amounts of money, these loans have turned the hard money lenders New York is home to into the first option of many business owners and real estate investors.