Rumors have it that the Manhattan NY hard money lenders are partially responsible for the progress registered by the local real estate market, and just a short overview of their activity is enough to justify this belief.
It is no secret that the economic downfall was felt on the loans market as well, when lenders raised their interest rates and revised their eligibility requirements. If getting a traditional loan from a bank was a challenge in the past, it has become close to an impossible dream throughout the last years, and certainly not an option real estate investors could consider.
If a young couple is willing to wait in order to get the money they need to buy the house of their dream, and they may find an understanding seller willing to grant them the time, real estate investors are always against the clock. Every minute, from the buying of the property to its sale, costs money. Thus, when they run out of cash, time is of the essence. Luckily for them, they have a more viable alternative than banks, namely hard money lenders.
How Do Hard Money Lenders Help the Real Estate Market?
In commercial real estate and house flipping, it is vital to procure the necessary loans as fast as possible, in order to keep the rehabilitation works going, without having to worry about credit scores or loan approval periods. Manhattan NY hard money lenders make this possible by offering loans that use the value of the property in question as collateral, thus reducing checks to a minimum and turning the approval procedure into a matter of weeks at most.
They make it possible for real estate investors to obtain the money they need much faster and with considerably less effort than if they were dealing with banks. For example, in order to qualify a smaller residential building, such as an apartment or a single-family home, for a hard money loan, the applicant only needs to provide evidence that the property is not occupied by the owner. It may help to show that the property is listed in the name of a corporation or LLC, to prove that it represents a commercial venture and not a personal loan.
The rest will depend on the appraised value of the property, as the loan value cannot exceed 70 % from it, in order for the Manhattan NY hard money lenders to have the certitude that, in case of default, they will recover their money, but it is obvious that through their offers, these lenders stimulate real estate investments.