Piscataway is a town in Middlesex County, New Jersey, and is a New York City suburb. Piscataway is located in Raritan Valley and has a population of just over 50,000 people. The town is named after the Piscataqua River, where the first European American settlers of the town came from. Part of Rutgers spills into Piscataway, and the Robert Wood Johnson Medical School is also located in Piscataway. In 2014, Money Magazine called Piscataway the 23rd best place to live in America.
According to Niche, Piscataway is one of the best places to live in New Jersey. It is known for being a very diverse place, but Piscataway is also known as a place that is very good for families, and where most people own their homes. It has terrific public schools, has great night life, and is incredibly diverse. Piscataway is also a place with significant green space and parks, and is home to many young professionals. Piscataway has a median home value of $334,300 and a median rent of $1,644.
Right now, Piscataway is a seller’s market. It is a town where demand is exceeding supply, and where homes are selling very fast and for higher than listing price. Piscataway is a housing bubble where real estate investors are getting into bidding wars over the best real estate in town.
Investors in Piscataway should look into hard money loans. Hard money loans are mainly used for real estate transactions like fix and flips and long-term rentals, but they’re predominantly known for house flipping. Hard money loans have a very fast speed of approval which can be incredibly advantageous in seller’s markets: they can be approved in a couple of days, whereas mortgages can take a month or longer to be approved.
Hard money loans can be approved so quickly because they use the property as the asset and collateral. They do not rely on financial standing as much as traditional mortgage loans. Hard money loans usually need a minimum credit score of 600 to 620, but the more important part is the property. Since hard money loans use the property as collateral, if a borrower defaults on a hard money loan, the lender owns the property. This is very different from the process for defaulting on a mortgage, which is the bank initiating a foreclosure that can be very expensive and lengthy.
For all these reasons, hard money loans also have plenty of risks. They have higher interest rates of 8–15%, which are much higher than the interest rates of traditional mortgage loans, which are just over 4%. Also, hard money loans have repayment periods of around a year, which are much shorter than the 30-year repayment periods often associated with mortgages. Lastly, hard money loans have LTV ratios around 65–75%, which is significantly shorter than the LTV ratios of traditional mortgage loans (80%).
It’s essential to only trust the best hard money lenders. Some hard money lenders have reputations as loan sharks because they tack on extraneous fees like origination fees, closing costs, and more. Other hard money lenders don’t give to new investors because they require a successful track record of investments. New investors might have to rely on factors other than experience, like financial standing or higher down payments, to make themselves more appealing borrowers for hard money lenders.
At Hard Money Lenders IO, we have compiled a list of the very best hard money lenders in Piscataway. Look no further for a financing partner for your real estate transaction.