Middletown is a town in Monmouth County, New Jersey. It has a population of just over 67,000 people, which makes it the largest municipality in Monmouth County. Middletown is a New Yrok City suburb, and also ranked several time in Money Magazine’s best places to live. It is a very safe community for people to raise families and simultaneously commute into New York City.
According to Niche, Middletown is one of the best places to live in New Jersey. It gives residents a sparse suburban feel and is a place where most people own their homes. It is a place with terrific public schools, great nightlife through restaurants and bars, and lots of green space. Middletown also has terrific public schools and has a median home value of $425,300 and a median rent of $1,366, which are significantly lower than the median home values and rents of neighboring New York City.
Right now, Middletown is a seller’s market. It is a place where demand is outpacing supply. Homes tend to sell for high prices and tend to be higher. Real estate investors in Middletown are getting into bidding wars over the best real estate in town, as the city is currently a housing bubble.
Hard money loans might be the best way to invest in real estate in Middletown. Hard money loans are an alternative source of financing used for real estate transactions like fix and flips and long-term rentals. These loans have a huge advantage in seller’s markets — they have very fast speeds of approval. They can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved.
These loans can be approved so quickly because they’re based on the property. Hard money loans calculate the terms and rates of the loan by the after repair value of the property. Hard money loans don’t rely on financial standing like traditional mortgage loans do (but they do require minimum credit scores of 600 to 620)— they use the property as collateral. If a real estate investor defaults on a mortgage, the bank initiates a foreclosure. However, if a borrower defaults on a hard money loan, the lender takes on the property.
This means hard money loans are riskier than traditional mortgage loans, and this is reflected in their disadvantageous rates and terms. Hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates of 8–15%, which are much shorter than the interest rates of just over 4% of mortgages. They also have repayment periods of more or less a year, which are significantly shorter than the repayment periods of mortgages. Lastly, hard money loans have LTV ratios of 65–75%, which are much shorter than the LTV ratios of traditional mortgage loans. They require greater buy-in from the borrower in terms of down payments.
It’s important to only trust the very best hard money lenders. Some hard money lenders have reputations as loan sharks because they add on extra fees like origination fees, closing costs, and underwriting fees. Hard money lenders might also not communicate well about those fees. A lot of hard money lenders don’t lend to new investors because they require a successful track record os investments.
At Hard Money Lenders IO, we have made a list of the best hard money lenders in Middletown. Look no further for a good financing partner for your real estate investment.
