Bridgeport is the biggest city in Connecticut. According to Ben Mizes at Clever, Bridgeport might be the best option to make the most of an investment or flip homes. It is an affordable place for experienced investors to get started investing in the Connecticut market, and it is very appealing due to its proximity to New York City. Many professionals who want to live close to Wall Street are starting to buy up real estate in Bridgeport as a result.
The Bridgeport market has been appreciating rapidly, and Bridgeport is only 60 miles from Manhattan and 40 miles from the Bronx. It is accessible by ferry to Long Island. It is home to the first Subway restaurant, and Bridgeport is known as “The Park City” due to its robust public park system. It is also home to the University of Bridgeport, a university well known for its quality nursing program.
According to Niche, Bridgeport has a population just under 150,000 people. It is located in Fairfield County and is a place most people rent their homes. Bridgeport has great night life and is one of the most diverse places in Connecticut. It is known for being one of the best cities in America for young professionals.
Right now, Bridgeport has a median home value of $174,700 and a median rent of $1,163, which are both well below some cities in Connecticut. Bridgeport is a seller’s market, which means prices are higher and homes tend to sell faster. It means supply is rapidly outpacing demand. There is a housing bubble where real estate investor are getting into bidding wars to compete for competitive properties.
Hard money loans might be the best way to invest in real estate in Bridgeport. Hard money loans are otherwise known as last resort loans and short-term bridge loans, but they’re mostly known for being used for real estate transactions. Hard money loans have a huge advantage in seller’s markets: they can be approved very quickly. Hard money loans can be approved in. a few days, whereas traditional mortgage loans can take a month or more to be approved.
Because of these differences, hard money loans are significantly more risky than mortgages, and this is shown in their terms and rates. They have plenty of drawbacks, including higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, which are significantly higher than the interest rates of mortgages (just over 4%). They also have repayment periods of more or less a year, which is significantly shorter than repayment periods for traditional mortgage loans. Lastly, hard money loans have LTV ratios around 65–75%, which is much shorter than LTV ratios for mortgages.
It’s important to only trust the best hard money lenders. Not every hard money lender is trustworthy, and some are known as loan sharks for tacking on extraneous fees and points like closing costs, underwriting fees, and origination fees. New investors might have a really hard time getting hard money loans because most hard money lenders require a successful history of fix and flips, and the ones that do might struggle with high interest rates and otherwise unforgiving rates. New investors need to use other factors than experience to make themselves appealing borrowers, like a strong credit score.
At Hard Money Lenders IO, we have you covered. Here is a list of the best hard money lenders in Bridgeport.