Greenburgh is a town in Westchester County, with a population of approximately 95,000 people. It is considered one of the best places to live in all of New York state, and according to Niche, is known for its terrific public schools, great night life, great diversity, and is terrific for raising a family.
Greenburgh offers an urban-suburban mix feel, and most residents in the town own their homes. There are many restaurants, and the town is known for having a lot of young professionals. Most people in Greenburgh own their homes, and the median home value is $580,400 and the median rent is $1,828.
Right now, Greenburgh is a buyer’s market. Supply is higher than demand. Homes are selling for low prices and take a long time on the market, and the market is currently favoring buyers over sellers.
Hard money loans could be the best way to invest in real estate in Greenburugh. In a housing bubble, hard money loans have the advantage of having very fast speeds of approval. However, in a buyer’s market, things are different.
In buyer’s markets, hard money loans have the pro of being approved for cash-only properties, where the buyer can only purchase the home with cash. Cash only is what it sounds like in real estate, but the actual term is a bit more complex than that. It means the home did not qualify for traditional financing and may be in such a state of bad condition the bank did not qualify the home for a mortgage.
Hard money loans might be considered cash because they’re not traditional financing, but also because by nature, they’re loans used for repairing distressed properties. Hard money loans are often used for real estate transactions like fix and flips and long-term rentals, and they use the property as the asset.
Real estate investors in buyer’s markets can make significant profit making a property in disrepair appealing for renters and buyers. Since hard money loans use the property as collateral, if a borrower defaults on a hard money loan, the lender owns the property, which is a much more expedient process than a borrower defaulting on a mortgage.
This means lenders also take on significant risk. Hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional mortgage loans. They usually have interest rates anywhere from 8–15%, which is much higher than interest rates for mortgage loans at just over 4%. Hard money loans also have LTV ratios between 65–75%, which is higher than the LTV ratios for traditional mortgage loans. Lastly, hard money loans have repayment periods of around a year, which is much shorter than the 15 to 30 year repayment periods of traditional mortgage loans.
It’s essential to only trust the best hard money lenders. Not every hard money lender is trustworthy because of the unregulated nature of the industry. Some lenders might tack on extra fees like underwriting costs, closing costs, and origination fees, while others don’t communicate well about fees. New investors might have a hard time getting hard money loans and need to rely on financial standing since they can’t rely on experience.
At Hard Money Lenders IO, we have made a comprehensive list of the best hard money lenders in Greenburgh, so you can find the best hard money lenders in