New Brunswick is a city in Middlesex County and home to the famous Rutgers University, the most famous public university in New Jersey. It is a very central city to Central New Jersey and is known as. commuter town for people coming into and out of New York City. New Brunswick is only 27 miles southwest of Manhattan, and in 2020, it had a population of over 55,000 people. New Brunswick is well known for its ethnic diversity through its growing Asian and Hispanic communities, as well as a thriving Hungarian population.
New Brunswick is a bit of a college town, as the first college football game in America was held there in 1869. New Brunswick gives residents an urban-suburban mixed feel and is a place where most people rent their homes. New Brunswick is known for. its thriving night life and diversity — there are a plethora of bars, restaurants, and more. It is home to many young families and young professionals as a college town. Right now, the median home value is $251,100 and the median rent is $1,470.
New Brunswick is currently a buyer’s market. There is more supply of homes than demand for homes, and homes are staying on the market for a long time and selling for lower than the listing price.
Real estate investors in the New Brunswick area would benefit from hard money loans. Hard money loans are an alternative source of financing to traditional mortgage loans, but they are mainly used for real estate transactions like fix and flips, long-term rentals, or other projects that require repairs of distressed properties. Hard money loans normally have advantages of speed and flexibility in buyer’s markets like New Brunswick. They can be approved very quickly, often within a couple of days. By contrast, traditional mortgage loans take a month or more to be approved.
In buyer’s markets like New Brunswick, however, hard money loans have other advantages. They can be used to purchase cash-only properties. Cash-only means you can only use cash to buy the property, but it also means the home is in such a state of disrepair the home just does not qualify for traditional financing. The bank won’t even touch the property.
Often, hard money loans can qualify as traditional financing because they use a different asset than mortgages. Also, hard money loans were essentially designed just for the purpose of repairing homes in poor condition. Real estate investors, particularly in a college town and rental market like New Brunswick, can turn a significant profit by making houses in poor condition appealing and attractive to renters.
Hard money loans use the property as the asset and collateral. They don’t depend on the financial standing of the borrower as much as traditional mortgage loans, so hard money loans are easier to approve. If a borrower defaults on the mortgage, the bank forecloses the home. But if the borrower defaults on a hard money loan, the lender owns the property in a much faster process.
For these reasons, hard money loans have lots of drawbacks. They have higher interest rates, shorter repayment periods, and lower LTV ratios than mortgages. In particular, interest rates of hard money loans tend to be 8–15%, which are much higher than the interest rates of traditional mortgage loans.
That’s why it’s important to only choose the best hard money lenders, and we have you covered here at Hard Money Lenders IO. These are the best hard money lenders in New Brunswick.