Concord is the capital of New Hampshire, and the third biggest city in New Hampshire behind Manchester and Nashua. Concord has a population of just under 44,000 people and is also home to the University of New Hampshire School of Law, the only law school in New Hampshire. It’s also home to St. Paul’s School, a well-known private prep school, and a popular community college.
According to Niche, Concord is located in Merrimack County and gives its residents a dense suburban feel. It’s a place where most people own their homes. There are many restaurants and coffee shops in town, and Concord is home to many young professionals. It also has a lot of green space and a great night life. It has great public schools.
Right now, Concord is a seller’s market. It’s a place where demand is exceeding supply, and where real estate investors are in a housing bubble with homes selling above listing price and very fast.
Hard money loans might be the best way to invest in real estate in Concord. Hard money loans are an alternative source of financing that is primarily used for real estate transactions. They’re also known as last resort loans and short-term bridge loans. They give real estate investors a huge advantage in seller’s markets that are really competitive, like Concord. Very often, especially in the 2022 housing market, investors are getting into bidding wars over the best real estate in town.
These loans have a huge advantage of having very fast speeds of approval. For real estate investors in bidding wars, hard money loans help invest in real estate because they help investors put down faster bids. While traditional mortgage loans can take a month or more to be approved, hard money loans can be approved in a couple of days.
The reality is hard money loans are very different from traditional mortgage loans. These loans have a different asset. Traditional mortgage loans typically rely on the financial standing of the applicant as the asset. A good credit score gets buyers and investors better rates. Hard money loans, however, rely on the property as the asset. They require minimum credit scores, and a good credit score most certainly doesn’t hurt. But hard money loans also use the property as collateral — the lender becomes the homeowner if a real estate investor defaults on a hard money loan. The lender then tries to flip the property themselves to make a profit, which is a possibility every lender takes into consideration before approving a loan.
Hard money loans, as a result, have a lot more disadvantages than traditional mortgage loans. Even in this housing bubble and skyrocketing interest rates, hard money loans have significantly higher interest rates than traditional mortgage loans. Hard money loans have interest rates of 8–15% on average, which is much higher than the current average 30 year interest rate of 5.6% of traditional mortgage loans. Hard money loans also have much shorter repayment periods — they need to be repaid in a year, whereas most mortgages need to be repaid somewhere between 15 to 30 years. Laslty, because hard money loans have lower LTV ratios than traditional mortgage loans, they require higher down payments.
At Hard Money Lenders IO, we have you covered. Here are the best hard money lenders in Concord.