Oyster Bay is a town in Suffolk County that is known for being very wealthy. It’s one of the three towns in Nassau County that extends from the North Shore to the South Shore of Long Island, and Oyster Bay is home to 18 villages and 18 hamlets.
Some of these villages and hamlets include Amityville, Bayville, Farmingdale, Bethpage, Syosset, Massapequa, and Jericho. Oyster Bay is also very accessible to New York City and the eastern part of Long Island through the Long Island Rail Road and stations in both Hicksville and Bethpage. Driving, it is accessible to the rest of Long Island through the Northern State Parkway and I-495.
Right now, Oyster Bay is a suburb that has approximately 300,000 people. It is one of the best places to live in New York that is well-known for having terrific public schools, particularly in Jericho and Syosset. It is a place where most residents own their homes and where there is thriving nightlife through bars, restaurants, coffee shops, and more. Oyster Bay is home to many young professionals and families, and can be an expensive place to live. It has a median home value of $530,100 and a median rent of $2005.
Oyster Bay is a buyer’s market. This means supply is greater than demand in Oyster Bay, and homes are selling for lower than the listing price and staying on the market for a long time.
Real estate investors looking into the area should look into hard money loans. Hard money loans are also known as short-term bridge loans and last resort loans, but they’re known for their very fast speeds of approval. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved. In a seller’s market, this is the biggest advantage, but a buyer’s market has other pros to hard money loans.
In a buyer’s market, hard money loans can help a borrower qualify for cash-only properties. Cash-only means a real estate investor can only use cash to pay for a property, but it also means a home is in such a state of disrepair a bank won’t touch the property with traditional financing.
Often, hard money loans can qualify as cash in cash-only purchases because they’re an alternative source of financing. By nature hard money loans were essentially made to fix homes in disrepair and turn them into attractive properties — they’re most well-known for house flipping. But real estate investors in a buyer’s market like Oyster Bay can make a lot of money by turning distressed properties into attractive ones for potential homeowners and renters.
Hard money loans are different from traditional financing because they use the property as collateral and the asset. They don’t depend on financial standing like traditional mortgage loans do, even if they require a minimum credit score of 600 to 620. If a borrower defaults on a hard money loan, the lender takes on the property. But if a borrower defaults on a mortgage, the bank forecloses on the property.
This results in plenty of disadvantages for hard money loans as well. Hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates around 8–15%, repayment periods around a year, and LTV ratios around 65–75%.
It’s important to trust only the very best hard money lenders for a market like Oyster Bay — this is why we at Hard Money Lenders IO have researched and chosen the best hard money lenders in Oyster Bay so you don’t have to.