They say that in life, success is measured not by your wealth or power, but by how you have been able to achieve your dreams. Now, most people would dream to become a successful business owner, a CEO, a professional or even to become a celebrity. But for those with a keen sense of business acumen, the best way to realize whatever it is that you dreamed of is to invest in real estate property. It will provide you with long-term benefits and its value never depreciates, no matter what happens to the economy. There will always be a target market for residential and commercial properties at any given point in time. So, to make your dreams a reality, you need a partner or resource that would allow you to do just that, this is where NYC hard money loans come in. this type of loan is characteristically different from a bank loan, but it is easier and faster, and it is no fuss and even provides you with related services and recommendations, for surely a bank would never do. The value of each real-estate property is dependent on two things, the first one is location, and the other one is the earning potential of the property. If a property is located in a prime area, prime neighborhood, or prime building and if it does not need any renovation or any repairs, then the higher its value. But in New York City, living and commercial spaces are such a commodity that real-estate properties can sell in a day, and sometimes offers even are greater than the original price just to gain an advantage of the sale. So if you are interested in a particular property and it comes into the market and you do not have the cash to buy it outright, and you know that it might probably sell in the next few days, then applying for a hard money loan is your best option.
Benefits of NYC Hard Money Loans
There are advantages and disadvantages to getting an NYC hard money loan compared to a bank loan for your real estate investment dreams, but it is up to you to decide which is more appropriate for your needs and interests. First of all, banks tend to take a long time to process and approve loan applications, they do have strict guidelines and policies and are meticulous with establishing the integrity of your purchase and credentials. Hard money loans are offered by direct lenders who have available funds all the time, and they do have access to the funds at any given time, there is no waiting period. Moreover, the loans are normally processed in three to five days but if you need the funds right there and then, they can also release the funds even on the same day. If you need to make an outright offer or pay the property to seal the deal, then hard money loans are the one for you. Secondly, when you apply for bank loans, the repayment scheme is longer and the interest rates are lower which also means that you will be able to realize profits and not just have to pay off the loaned amount. Hard money loans are indeed payable for up to a maximum of three years only and the interest rates are higher, but then, the lenders take into consideration the earning capacity of the property and this has already been computed in the repayment scheme. Nothing is written in stone and those who offer hard money loans are committed to helping you succeed as they will not be able to get their money if your property will not generate an income. Thirdly, banks scrutinize your credit score, and generally, if it is poor or low, they will outright refuse your loan application. With NYC hard money loans, you do not need to worry about your credit score as they are more lenient in this area considering that people do make mistakes and they can learn from it. Fourth, banks often approve loans made by individuals and not by LLCs, while hard money loans only deal with LLCs, as they are mandated by law to only offer the loan to entities and not individuals. This is not even a big deal as the lender will help you in securing an LLC to satisfy that requirement. Lastly, banks are picky with the kind of properties they approve, it has to satisfy several requirements like having a certificate of occupancy. What if you were buying a dilapidated old building on the cheap so you could flip it and the bank denies your loan application? Hard money loan providers are not concerned as much, what they are after is a property that has a very high probability of making more money. So given the pros and cons of bank loans and hard money loans, the decision is yours to make.
Finding The NYC Hard Money Loans
It is not difficult to find local lenders who offer NYC hard money loans, however, those out there may not have your best interests at heart. Of course, even if lenders appear to be providing a service or helping you realize your dreams, they ultimately are in it for the business aspect. So, try to find a local lender that will provide you with the best deal, wherein you get the most value for your loaned money and will help you realize your dreams to pay for the loan with your real-property investment. Admittedly, you will not be able to buy a property right there and then unless if you suddenly came into some money from a departed wealthy relative. Thus, the service provided by lenders of NYC hard money loans is indeed helping people achieve their dreams to own a property and have it generated more money and be able in the future to live comfortably. Not all lenders are created equally, so find the one that has the lowest interest schemes and has the longest repayment terms so that you have a buffer period if your property is slow-moving.