Islip is a town in Suffolk County and is a very populous one with a population of over 300,000 people. It is the fourth biggest city in New York state, and Islip is known for its great night life, diversity, and being an overall great place to raise a family. Right now, Islip has a median home value of $365,099 and a median rent of $1,730, which are above the national average. Most people in Islip own their homes, which also makes it a great place to invest in real estate.
Islip has a reputation for fishing, clamming, swimming, and boating. It has very competitive public schools and is divided into numerous hamlets, including Ronkonkoma, West Islip, and East Islip. Islip is also a hub for transportation, being home to multiple major roads that connect Long Island, a local airport, and multiple train stations on the Long Island Rail Road (LIRR). Also, it is very close to Stony Brook University, a huge university in Suffolk County where many people live nearby and commute.
Right now, Islip is a neutral housing market, which means prices are reasonable. They don’t sell too fast or too slow. Usually, bidders avoid getting into wars amidst a housing bubble for competitive houses.
Hard money loans are a valuable resource to invest in real estate in Islip. Hard money loans are also known as short-term bridge loans or last resort loans, but their biggest source of advantage is their very fast speed of approval. Hard money loans can be approved within a couple of days, which is especially beneficial to buying a home in Islip and being competitive. This contrasts with traditional mortgage loans, which can take more or less a month to be approved.
Hard money loans are also more flexible than mortgages and can be spent more freely to the real estate investor’s discretion. Hard money loans can be approved so quickly because they’re based on the property, not the credit score of the borrower. While credit score still matters, the terms and rates of hard money loans are mostly based on the after-repair value of the property. Since the property is the collateral, if a borrower defaults on a hard money loan, the borrower collects the property, which is very different from a traditional mortgage loan where the bank initiates foreclosure proceedings.
This also means hard money loans have plenty of disadvantages and risks to the borrower, since they’re not called last resort loans for no reason. Hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional financing. They have interest rates of 8–15%, and repayment periods of more or less a year. With lower LTV ratios, borrowers have to put down a greater proportion of the home sale price as the down payment.
It’s also important not to just trust any hard money lender. Most hard money lenders won’t lend to new investors due to requiring a track record of successful real estate investments. Many other hard money lenders may tack on extraneous fees, like underwriting fees, closing costs, and origination fees. Some earn a reputation as “loan sharks” as a result, which is why it is so essential only to trust the best hard money lenders.
At Hard Money Lenders IO, we have you covered. We have found the best hard money lenders in Islip for your financing journey.