No matter where you are in the US, hard money lenders are very easy to find. In fact, they are looking for you as much as you are looking for them because you both are doing business. Understandable, flip and fix real estate investors are the most likely seekers of hard money loans. These sets of investors need both residential and commercial short term loans which fund their businesses really fast and can be repaid without holding costs or prepayment penalties. In the same manner, long term investors can also benefit from hard money loans. Whichever way, hard money New Jersey is one of those very important investment financing option for realtors in the area.
Because every investor want to make profits and be able to repay hard money loans to lenders, they are usually on the lookout for the best hard money lenders in town. While this could be a very difficult thing to do, it is much easier with a set of considerations as we have highlighted thus;
Rates, interests and fees charged: Investors need lenders that offer loans with lower interest rates so that repayment wouldn’t be a difficult thing to do for them. Hard money lenders basically charge from between 7.5 percent to 12 percent interest rates and other fees that affect holding costs and profitability. The lower those charges are, the better the loan deal for investors.
Loan term is another big consideration. Hard money loans are largely short term in nature. This means that between 1 and 3 years, investors should be ready to repay them. However, the best lenders usually don’t attach any form of prepayment penalties to early repayments.
Hard money qualifications are equally very important. Lenders usually require a credit score of 550 minimum. They also usually place most of the qualifications on property as well as the investors’ background and experience. The best hard money lenders in New Jersey wouldn’t for any reason require a greater qualification clauses from you. Although they would want to be sure that you can repay the loans but not as much as giving you a mountain of qualification requirements to climb.
The customer service of hard money lenders are also very important to borrowers before getting deep into borrowing and transactions. The best hard money lenders in New Jersey and beyond are typical online lenders. They offer grade ‘A’ quality customer services via their online platforms more than the traditional hard money lenders. They have a customer service unit you can easily approach to address whatever transaction issues you have with them.
Above all, the joy of every borrowers is to have quick cash to salvage whatever need it is meant to address. That makes funding time a very much important consideration to determining if a lending firm is one of the best. A very good and professional hard money lender must fund you within two weeks after you must have submitted al required documents and met their salient needs. They must be willing to close deals with you quickly so that you can complete your investment soonest and be able to repay the loan in time.
Once you see a hard money lender that passes all of the above tests, all that remains for you is to do your part and get the money. However, you have to also ensure that the firm you have made contact with specializes in hard money lending, and that it is local to your area. Insist on high degree of transparency, determine your hard money need, check for licensing and certification of the firm and try as much as possible to understand the significance of loan-to-value ratio before proceeding. These ways, the best deals await you in hard money loans.