Investors turn to a private hard money lender in NJ in case they have poor credit history, are in a hurry, do not want to go through the paperwork involved in borrowing money and are willing to pay higher than normal rate of interest. New Jersey being the hub of commercialization due to its strategic location both as a port and in neighborhood of New York, businesses flourish here and the number of people who want hard money loans is on the increase. Irrespective of how the borrower intends to use the money: to buy property for personal use, renovate it or sell it further, private a money lender will be by his side in New Jersey to ensure his success.
A private hard money lender in NJ is not too tough to find. He is willing to accept greater risk of default or foreclosure as compared to the mainstream mortgage companies, banks or any other financial institution and hence his rate of interest is substantially higher. These private money lenders conduct brisk business, providing loans to borrowers who would otherwise be turned down because formal lending organizations have to follow strict guidelines of the industry. Private hard money lenders are a great help in situations when the dwellers of New Jersey want:
• To purchase property in a remote, far-flung area which an ordinary mortgage company would find difficult to sell in the event of foreclosure.
• To acquire property whose value is difficult to appraise by the usual lending institutions.
• The prospective borrower has had a recent bankruptcy, a bad credit history or when he does not qualify for the amount of money he wants.
• The person in need of money is already neck deep in debt but does not wish to delay a new venture.
A private hard money lender in NJ is free to operate on his own rules, depending upon the risk involved and his prior experience in the business. He also takes into consideration the loan to value percentage, type of the property being collateralized before deciding the maximum amount he will loan out. The usury laws of New Jersey prevent a private lender from operating in ways similar to other states. A private hard money lender in NJ usually considers a minimum amount of $1,000,000 as worth getting involved with due to the affluence of the state. The deal is closed very quickly, sometimes as early as within 24 hours.