Babylon is a town in Suffolk County, New York on the south shore of Long Island. It is very close to New York City, being only 20 miles away from Queens and 30 minutes away from Manhattan. Babylon has a population of around 218,233 people, according to the 2020 census, and is known for having great shopping, great access to beaches, and being a very nice place to live.
According to Niche, Babylon is a place with terrific schools, a sparse suburban feel, and a place where most people own their homes. It is home to many young professionals and is also a great place to raise a family. Babylon is a place where there are many restaurants and parks, so the town is known for having thriving nightlife and green space. Right now, the median home value is $361,300 in Babylon and the median rent is $1,677, which is expensive but very affordable compared to other places on Long Island.
Right now, Babylon is a seller’s market, which means demand is outpacing supply in the city. It is a place where homes are selling for high prices and fast. In the housing bubble Babylon is in, real estate investors are getting into bidding wars over competitive real estate in the state.
In a seller’s market like Babylon, real estate investors should look into hard money loans. Hard money loans are also known as last resort loans, but their biggest advantage in a seller’s market like Babylon is their very fast speed of approval. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans can be approved in a month or more.
This speed of approval is essential in a seller’s market for making real estate investors instantly competitive. Hard money loans get the fast financing many investors need. Hard money loans can be approved so quickly because they use the property as the asset. They use the after-repair value of the property to determine the rates and terms of the loan.
Hard money loans are mainly used for real estate transactions like fix and flips, long term rentals, and repairs of distressed properties. Since they use the property as collateral, if a borrower defaults on a mortgage, the bank initiates costly foreclosure proceedings. But if a borrower defaults on a hard money loan, the lender takes on the property in a much more expedient process.
This means hard money loans also have plenty of drawbacks and disadvantages. Hard money loans have interest rates around 8–15%, repayment periods of more or less a year, and LTV ratios around 65–75%. These are much more unforgiving than traditional mortgage loans, which have, on average, interest rates of just over 4%, repayment periods of 15 to 30 years, and LTV ratios around 80%.
It’s important to trust only the most reliable hard money lenders. Not every hard money lender is trustworthy because some tack on extraneous fees of origination fees, underwriting fees, and closing costs, or they might not communicate well about these fees until signing. Other hard money lenders don’t give to new investors, which forces new investors to become appealing borrowers through other means like putting down higher down payments or having higher financial standing.
As a result, we have made a list of the best hard money lenders in Babylon so you don’t have to — here are the best financing partners for your real estate transaction.