Real estate investors who are looking at rehabilitating properties in Manhattan can definitely benefit from being familiar with the practices of the local hard money lenders. Knowing just how much money you can have loaned to you in case you need it can save your project from floundering.
Types Of Properties Funded By The Commercial Hard Money Lenders in Manhattan NY
NY hard money lenders are not interested in all types of properties. In many cases, you will find that is difficult to secure a loan if the property in question is not one that falls into one of the following major categories:
• Five or more family unit homes;
• Retail properties;
• Industrial properties;
• Unoccupied 1-4 family properties owned by a corporation or LLC.
You will notice that the residence you live in is not on the list. Trying to get a hard money loan made out in your name, for your own home, is largely prohibited, both by state regulation and by the lender’s interests, since these deals rarely turn out well for either party.
In order to maintain the relationship between the investor and their property a professional one, it is necessary to prove that the property in question is not the home of the investor. For this reason, homes and other small residential properties are required to be owned by a corporation or LLC.