Today’s economy is tough. Granted, it is recovering, but it’s still a bit rocky. For people looking for a loan to invest in real estate, it seems almost impossible to get one, but do not despair: If you are a real estate investor and you live in New York, you’ve chosen the right state to help you get financing for your prospective investment opportunities.New York hard money lenders benefit real estate investors because they have finances at hand to lend and are more than ready to do so.
A hard money lender is a private lender who loans money to you – the real estate investor- based on the value of the hard asset you are considering. Contrasting hard money lenders and traditional bank lenders, it is clear that the former is the better deal. Hard money lenders are not constrained by the rigid regulations traditional bank lenders are so there is much less red tape to go through. This means you can have your money in a matter of days (4-7 usually), rather than 30 or more with a bank, so New York hard money lenders benefit real estate investors by speeding up the entire loan process.
The only real downside to getting a hard money loan is the high interest rate. These rates vary from state to state, but in New York, the usual charge is 18%. Although this may seem a bit much, the fast return on the investment takes the sting out of it. Everyone wins when they get a good, fast return on their venture.
There are a few steps in hard money financing. A hard money lender will most likely send out his/her own property appraiser, environmental inspector, and surveyor before he/she gives out any cash. Costs for these services must be paid up front. The lender will then send out a letter of intent, after which he/she will require that any legal fees for document processing also be paid. Once that is taken care of, the hard money lender will schedule a closing date. Then it is up to you, the real estate investor, do whatever is necessary to build/improve upon your property, sell it or collect enough rental income from it to repay the loan, and begin to make a profit from it.
Some other ways in which New York hard money lenders benefit real estate investors are by getting money to investors like you quickly, they are helping to beautify the whole state .For instance, once the money is in your hands you can go from one project to another, building beautiful new homes all over New York, adding to its already remarkable appearance. Since hard money lenders do not base their decisions on your credit score or financial past, but on the value of the property you’re going to invest in, there is little risk to either of you. Contact a New York hard money lender to reap the benefits of working with one. It could be the best decision you’ll ever make.