Orangetown is a city in Rockland County, New York. It is just outside of New York City and north of New Jersey, and it has a population of just under 50,000. Niche rates Orangetown as one of the best places to live in New York. In Orangetown, most people own their homes, and it is home to a lot of parks, bars, restaurants and coffee shops. It is home to many young professionals and retirees, simultaneously, with great public schools. It is a great place to commute to New York City while raising a family.
Orangetown is also a city along the Hudson River, famously home to the largest World War II Army embarkation camp in the U.S.A. It became a suburban housing hub in the 1950s, after World War II, and is the home to the Rockland Psychiatric Center, as well, as well as the Camp Shanks Museum and Monument.
Right now, Orangetown is a seller’s market, which means demand is rapidly outpacing supply in Orangetown. This means there are not enough homes to keep up with demand, and real estate investors in Orangetown, and investors will also get into bidding wars over competitive properties.
Hard money loans might be the best way to invest in real estate in Orangetown. Otherwise known as short-term bridge loans or last resort loans, hard money loans are predominantly used for real estate transactions. In particular, they’re mostly used for fix and flips, long-term rentals, and construction projects.
Their biggest advantage in a seller’s market like Orangetown is their very fast speed of approval. Hard money loans can be approved so quickly because they’re based on the property, not the financial standing of the applicant. This doesn’t mean the credit score of the borrower does not matter — hard money lenders usually require minimum credit scores of 600 to 620.
In particular, hard money loans are based on the after-repair value of the property. They use the property as collateral, and if a borrower defaults on a hard money loan, the hard money lender takes on the property. This can result in significant profit, but it can also result in a lot of risk.
Hard money loans also come with significant risks to both the lender and the borrower. They come with higher interest rates than traditional loans, which have 8–15% interest rates, compared to just over 4% interest rates of traditional loans. They also come with shorter repayment periods of just a year, which are significantly shorter than traditional loans, which typically have 15 to 30-year repayment periods. Since hard money loans also have lower LTV ratios, this means real estate investors need to pay larger downpayments for hard money loans than for traditional financing.
It’s important to be especially careful as a new real estate investor. Many real estate investors don’t get hard money loans since most hard money lenders require successful track records of investments. Many hard money lenders also have reputations as loan sharks due to tacking on extraneous fees or not communicating well about fees, like origination fees, closing costs, and underwriting fees. Foreign nationals may also have a very hard time getting hard money loans due to documentation requirements.
We have you covered at Hard Money Lenders IO. These are the best hard money lenders in Orangetown.