Hartford is one of the most famous cities in Connecticut, and is the capital of the state. It is the fourth largest city in the state with a population of over 120,000, and is also well-known as one of the oldest cities in the United States. It is home to the oldest museum in the country, the oldest publicly funded park in the country, and the oldest newspaper in the country.
It is also home to the famous Mark Twain House, and today, Hartford is known as “The Insurance Capital of the World” due to the city being home to many insurance companies. Hartford is also home to Hartford University.
Right now, Hartford is a place with great night life and great diversity, giving an urban suburban mix feel. Most people who live in Hartford rent their homes, and there are many places to dine in the city. According to Niche, the median home value in Hartford is $165,300 and the median rent is $985, which make Hartford relatively affordable compared to the rest of Connecticut and the New England region.
Hartford, right now, is a seller’s market, which means it is a city where demand for housing is outpacing supply. Homes in Hartford have higher prices and homes sell faster than they do in other parts of the country that have neutral or buyer’s markets. Real estate investors and bidders might get into bidding wars for a competitive property within Hartford.
Hard money loans might be the best way to invest in real estate in Hartford. Otherwise known as short term bridge loans or last resort loans, hard money loans are usually used for fix and flips, long term rentals, construction projects and the repair of distressed properties. Hard money loans have a huge advantage in seller’s markets, in particular, since they have very fast speeds of approval. While mortgages can take more or less a month to be approved, hard money loans can be approved within a matter of days.
The reason hard money loans can be approved so quickly is because they’re based on the after repair value of the home, not the credit score of the borrower. It’s not like credit score doesn’t matter, since most hard money lenders still have a minimum credit score requirement. However, hard money lenders use the property as collateral for a loan. If a borrower defaults on a mortgage, lengthy foreclosrue proceedings can result. For a hard money loan, however, the lender takes on the property in case of a borrower defaulting on a loan, which can result in significant profit to the lender.
This also means hard money loans come with significant risks. They have higher interest rates, lower LTV ratios, and shorter repayment periods. Hard money loans have interest rates of 8–15%, repayment periods of more or less a year, and much lower LTV ratios than traditional mortgage loans. This is significantly less forgiving than the just over 4% interest rate of the average mortgage, 15 to 30 year repayment period, and higher LTV ratio of a mortgage.
It’s important to find a good hard money lender. This is why here, at Hard Money Lenders IO, we have found the best hard money lenders in Hartford so you can find the best partner for your real estate investment.