Cherry Hill is a New Jersey suburb that has a population of just under 75,000 people. It has a rapidly increasing population and has become a major commercial center just south of Center City, Philadelphia. It is in the Delaware Valley coastal plain and very close to the city, and is named Cherry Hill because of the cherry trees located in the area.
According to Niche, Cherry Hill is located in Camden County and has a reputation as one of the best places to live in New Jersey. It gives residents a dense suburban feel and is a place most people own their homes. Cherry Hill is home to a plethora of restaurants, coffee shops, parks, and more. It is home to many young professionals and retirees, and Cherry Hill is also home to terrific public schools. Right now, Cherry Hill has a median home value of $277,300 and a median rent of $1420.
Right now, Cherry Hill is a neutral or buyer’s market. It is a place where demand and supply are equal, and where homes are selling for about listing price, and staying on the market an average amount of time.
Real estate investors in Cherry Hill should consider hard money loans. Hard money loans are an alternative source of financing mainly used for real estate transactions like fix and flips, long-term rentals, and more. Hard money loans give a huge advantage of being approved very quickly — they can be approved within a couple of days, whereas traditional mortgage loans can take a month or more to be approved. This fast speed of approval instantly gives real estate investors a competitive boost and advantage so they can put down faster bids.
Hard money loans are can be approved so quickly because they’re based on the property, not the financial standing of the borrower. Hard money loans don’t depend on financial standing as much as traditional mortgage loans. Hard money loans might have minimum credit scores of 600 to 620, but they don’t rely on financial standing for the terms and rates of their loans.
Hard money loans use the property as collateral. If a real estate investor defaults on a mortgage, there’s a foreclosure that decimates the credit score of a borrower. And if a real estate investor defaults on a hard money loan, the lender takes on the property in a process that can result in great profit to the lender. Hard money lenders always look at this possibility before approving a loan, and this factors into the terms and rates of the loan.
Because of this, hard money loans have plenty of disadvantages and risks. They have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional mortgage loans. They have interest rates around 8–15%, which are much higher than the interest rates of traditional mortgage loans. Hard money loans also have LTV ratios of 65–75%, which means real estate investors have to put down much bigger down payments than traditional mortgage loans to show greater buy in. Lastly, hard money loans have very short repayment periods of a year, which is much shorter than repayment periods of 30 year mortgages.
It’s very important for investors to only choose the best hard money lenders. Not every hard money lender is going to give every investor the fairest rates and terms.
That’s why we at Hard Money Lenders IO have compiled a list of the best hard money lenders in Cherry Hill.