Colonie is a city in Albany County, and is the most populous suburb in Albany County. Colonie has a population of about 80,000 people. Originally, Colonie was part of the Rensselaerwyck manor, but now it is just known for being an Albany suburb. It is home to the Albany International Airport.
According to Niche, Colonie is one of the best places to live in New York. It is a suburb where most people own their homes, and Colonie has a thriving nightlife with lots of restaurants and bars. It is also home to much green space with lots of parks. Colonie is home to many young professionals, and the suburb is known for having terrific schools. Colonie has a median home value of $240,800 and a median rent of $1,152, which are both above the national average but affordable for New York state.
Right now, Colonie is a buyer’s market. It is place where supply is greater than demand and homes are staying on the market for a long time. Homes are regularly selling for lower than the listing price.
Hard money loans might be the best way to invest in real estate in Colonie. Hard money loans are also known as short-term bridge loans and last resort loans, but they’re primarily used for real estate transactions like fix and flips, long-term rentals, and construction projects. Hard money loans usually have the advantage of being approved very quickly, but in a buyer’s market like Colonie, hard money loans have other advantages.
In buyer’s markets, there tend to be lots of cash-only properties. Cash-only means a buyer can only use cash to purchase a property, but it also means a property is in such a state of disrepair that banks won’t touch the property. Hard money loans can qualify as cash-only and put investors in the running for a select group of properties.
While hard money loans aren’t actually cash, they can qualify as cash because they’re not mortgage loans, and hard money loans were essentially made just for repairing properties in disrepair. Real estate investors can make a lot of money flipping homes in disrepair to become appealing properties, particularly for rentals.
Hard money loans can be approved within a couple of days because they use the property as collateral. They also use the property as the asset, but they do not depend as much on the financial standing of the applicant as traditional mortgage loans. Hard money loans use the after repair value of the property to calculate the terms and rates of their loans. If a borrower defaults on a hard money loan, the lender takes on the property. But if a borrower defaults on a hard money loan, the bank initiates long and costly foreclosure proceedings.
This means hard money loans are very risky, and these risks are reflected in terms and rates of hard money loans. Compared to traditional mortgage loans, hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. This stands in contrast to the average mortgage, which has an interest rate of around 4.2%, a repayment period of 30 years, and an LTV ratio of 80%.
It’s essential to trust the best hard money lenders, which is why we have you covered at Hard Money Lenders IO. Here are the best financing partners for your real estate transaction.