Are you stuck in the middle of a rehab project and you were told that your best chance to get the financing you need is working with the hard money lenders New Jersey is home to?
Are you sure your project meets their requirements? Do you have what it takes to complete it, sell or rent the property and repay the loan on time? You should find out the truth before you sign any loan agreement, so take the following quiz.
Five Questions You Should Ask Yourself Before Contacting Hard Money Lenders
- Do you have enough information about how New Jersey hard money lenders operate and the loans they offer? You should always do your homework and consider your options before making any decisions.
- Did you have the property you plan on rehabbing inspected, appraised and the conclusions included in a detailed report, sustained by photos and maybe even a video? Lenders want to see facts, blueprints, photos, detailed presentations, not just to hear a beautiful story about your plans of getting rich.
- Do you have a solid rehab plan, with quotes from the contractors involved, to show exactly how long the works will take and when the project will be completed? Any lender will want to know what they are investing in and when they can recover their investment. Keep in mind that hard money lenders New Jersey rarely or never accept repayment terms longer than one year. Besides, the longer the repayment term is, the higher the costs of the loan will be.
- Do you have detailed, realistic cost estimations to show your lender how much money you need and what you will be spending it on? They will want to know that your plans are realistic and will see completion, to make sure you will not go back to them, asking for more money.
- Are you sure you will be able to repay the loan at the due date, even if unforeseen things happen? Remember that the property you are rehabbing is at stake, so you need to have all grounds covered, to make sure you will not lose it.
If your answer to all of these questions is positive, then yes, contacting hard money lenders New Jersey is a good idea. After all, you would be just reviewing your options, with no strings attached. If the loan offer you receive matches your needs and plans, you can always go ahead and begin your collaboration with the rehab hard money lenders New Jersey is home to – if not, you will have to find some other option.