Almost everyone knows Manhattan as the epicenter of New York City and the most famous borough in the city. Manhattan is the most densely populated of the New York City boroughs, and when people think of New York, they think of Manhattan. Manhattan is the cultural center of New York, but also the cultural, media, and financial center of the world. Manhattan is home to Wall Street, the New York Stock Exchange and the Nasdaq, as well as countless museums.
All that being said, Manhattan is also a very expensive place to live. It has a high cost of living, but it’s also a great place to invest in real estate and turn investment homes into appealing properties. New York City is a place where there is a terrific rental market, as many New Yorkers left Manhattan during the pandemic but have been returning due to the reopening process. On the bright side, someone with Manhattan does not need a car to get around. With increasing rents, Manhattan is a great place to invest in real estate while mortgage rates are still low.
According to Niche, Manhattan has a population of just over 1.6 million people. It’s one of the best places to live in New York, and it gives residents a dense urban feel. Most people own their homes in Manhattan. Manhattan is known for being a great place to raise a family with great night life and diversity. It also has great schools. Manhattan has very expensive home values and very expensive rent values — it has a median home value of $987,700 and a median rent of $1740.
Right now, Manhattan is a buyer’s market. It is a place where supply is greater than demand, and homes are staying on the market for a long time and selling for lower than listing price.
Real estate investors in Manhattan should look at hard money loans. In seller’s market, hard money loans usually have the advantage of having a very fast speed of approval. But in buyer’s markets, hard money loans have the advantage of qualifying investors for cash-only investment properties.
Despite a competitive market, cash-only in the Manhattan real estate market means a buyer can only use cash to pay for the property. It also means a home is in such a state of disrepair the bank won’t touch the property. The home did not qualify for traditional financing.
Hard money loans can qualify as cash-only in real estate because hard money loans are a different source of financing than traditional mortgage loans. Hard money loans are usually used for fix and flips, long-term rentals, and other repairs of distressed properties. They can be used to buy investment properties and turn them into appealing properties for borrowers.
It’s easier to get a hard money loan than it is a mortgage — hard money loans are less regulated and rely on a different asset. Namely, these loans rely on the property as an asset, not financial standing like traditional mortgage loans. They use the property as the collateral for the loan. If a borrower defaults on a mortgage, the bank forecloses on the home. But if a borrower defaults on a hard money loan, the lender takes on the property.
This means hard money loans also have a lot of drawbacks, like higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans.
It’s essential to only trust the very best hard money lenders, which is why we at Hard Money Lenders IO have made a list of the best hard money lenders in Manhattan.