Howell is a city in Monmouth County, New Jersey. It is the largest municipality in the county. It is a New York City suburb that has a population of just over 50,000 people. Howell was named after the third governor of New Jersey, and it is known for having tons of green space in lakes and major bodies of water. Manasquan Reservoir is located in Howell, which offers activities like fishing, bird watching, jogging, biking, and more.
According to Niche, Howell is one of the best places to live in New Jersey. It is known for its terrific public schools, being a great place to raise a family, and having terrific night life and diversity. Howell gives residents a suburban rural mix feel, and most people who live in Howell own their homes. Howell is home to many restaurants, coffee shops, parks, and more. It is home to many young professionals, and public schools in Howell are very well-rated.
Right now, Howell has a median home value of $341,200 and a median rent of $1,528. Howell is a seller’s market. It’s a place where supply is drastically outpacing demand, and real estate investors are getting into bidding wars over prime real estate in Howell. Homes are selling fast and for higher than listing price in Howell.
Hard money loans might be one of the best ways to invest in real estate in Howell. Hard money loans are also known as last resort loans or short-term bridge loans, but they’re mostly used for real estate transactions like fix and flips, long-term rentals, and construction projects. In a seller’s market like Howell, hard money loans give the distinct advantage of very fast speeds of approval. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved.
The reason hard money loans can be approved so quickly is because they’re based on the property the loan is for. By contrast, traditional mortgage loans use financial standing and the credit score of the borrower. It’s not like hard money loans don’t rely on the credit score of the borrower, since they require a minimum credit score of 600 to 620. However, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure process. But if the borrower defaults on a hard money loan, the lender takes on the property in a swift process.
Because of this, hard money loans also have plenty of disadvantages. They have high interest rates, short repayment periods, and lower LTV ratios than traditional mortgage financing. Hrad money loans have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. These are much more unforgiving rates than those of traditional mortgage loans, which have interest rates of just over 4%, repayment periods of 30 years or more, and LTV ratios of 80%.
It’s essential to only trust the best hard money lenders. Some hard money lenders have a reputation as loan sharks because they tack on fees like underwriting fees, closing costs, and origination fees. Other hard money lenders don’t give to new investors because they don’t have a successful track record of successful investments.
That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Howell.