Franklin is a town in Somerset County, New Jersey, with a population of over 60,000 people. Its population has been growing rapidly, and it is located within the New York metropolitan area. Franklin has historically been known as a farming community, but recently it has become a very fast growing suburb that is very diverse in terms of race, religion and culture. It was ranked as the fifth best place to live in America in CNN’s Money Magazine in 2008.
According to Niche, Franklin is one of the best places to live in New Jersey, and it is a suburb of the New York City area. It is a very diverse place with a dense suburban feel, and most residents own their homes. There are lots of parks and green space in Franklin, and young professionals and families compose many of the residents in Franklin. Right now, Franklin is known for having terrific public schools. It has a median home value of $337,100 and a median rent of $1642.
Franklin is a buyer’s market as of April 2022. It is a place where supply is outpacing demand and where real estate investors are looking at distressed properties to repair and make attractive to buyers again.
Hard money loans might be a great way to invest in real estate in Franklin. Hard money loans usually have an advantage in seller’s markets of having very fast speeds of approval. They can be approved in a couple days, whereas traditional mortgage loans can take a month or more to be approved.
In buyer’s markets, however, hard money loans can help borrowers purchase cash-only properties. Cash-only properties can only be bought with cash, but they also are in such poor condition the bank won’t qualify them for traditional financing. It takes substantial repair of a cash-only property for them to qualify for traditional financing again.
Hard money loans can qualify as cash for cash-only properties. This is because they’re an alternative to traditional financing. They also are essentially designed to repair homes in disrepair — they are used for fix and flips, long-term rentals, and construction projects.
These loans are different from traditional mortgage financing because they use the property as the asset for the loan. Hard money loans use the property as the asset. They use the property as collateral. Unlike traditional mortgage loans, they don’t rely on financial standing as the basis of a loan. If a borrower defaults on a mortgage, the bank forecloses the property. But if a borrower defaults on a hard money loan, the lender takes on the property, and lenders often look into this possibility so they could turn a profit if they take ownership.
Because of this, hard money loans also have plenty of disadvantages. They have higher interest rates than traditional mortgage loans. Hard money loans have interest rates of 8–15%, which are significantly higher than interest rates for mortgages (just over 4%). They also have to be repaid within a year, which is significantly shorter than the repayment periods of traditional mortgage loans. Lastly, hard money loans have lower LTV ratios than traditional mortgage loans, which means lenders require borrowers to have greater buy-in than they do for mortgages.
Not every hard money lender is trustworthy, which is why we at Hard Money Lenders IO have you covered. These are the best hard money lenders in Franklin.