Old Bridge is a town in Middlesex County and is a New York City suburb with a population of just over 65,000 people. It is only 25 miles away from Manhattan and 30 miles away from Newark, and Old Bridge was originally known as Madison Township in the late 1800s, and Old Bridge has historically been known as one of the best places to live in America by Money Magazine and a very safe place to raise a child.
According to Niche, Old Bridge is one of the best places to live in New Jersey and gives its residents a dense suburban feel. Most people who live in Old Bridge own their homes, and there are tons of parks and green space within Old Bridge. Many young professionals and families live in the town, and Old Bridge also has very nice schools. It has a median home value of $351,000 and a median rent of $1286, which make Old Bridge significantly more affordable than living in New York City.
Right now, Old Bridge is a buyer’s market. It is a place where supply is greater than demand, and homes are on the market for a long time and selling lower than listing price.
Real estate investors in Old Bridge should look into hard money loans. Hard money loans are also known as short-term bridge loans and last resort loans, but their biggest advantage in a buyer’s market like Old Bridge is different from their benefit in a seller’s market. In a seller’s market, hard money loans would have the benefit of having very fast speeds of approval. But in a buyer’s market, hard money loans give buyers the opportunity to buy cash-only homes.
In real estate, cash-only means a borrower can only use cash to pay for the property, but it also means the home is in such poor condition the home didn’t qualify for traditional mortgage financing, and the bank won’t touch the property. It means the home needs significant repairs to be able to qualify again.
Hard money loans sometimes qualify as cash in cash-only purchases because they are an alternative source of financing to traditional mortgage loans, and they were essentially designed to repair homes in disrepair. Hard money loans are mostly used in real estate transactions like fix and flips, long-term rentals, and construction projects.
They use the property as an asset. Hard money lenders don’t depend as much on financial standing as much as traditional mortgage loans. Hard money loans also use the property as collateral. If a borrower defaults on a hard money loan, the lender takes on the property in a very expedient process. However, if a borrower defaults on a mortgage, there’s a very lengthy and expensive foreclosure process.
This means hard money loans also have a lot of disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates around 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. These are significantly less forgiving than the interest rates just over 4% of mortgages, 80% LTV ratios, and repayment periods of 30 years.
It is important borrowers only choose the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Old Bridge.