Plainfield is a city in Central New Jersey and is known as “The Queen City.” Plainfield has a population just over 50,000 people and is a regional hub of central New Jersey. It refers to both North and South Plainfield, and Plainfield has a history of being settled by the Quakers as a result. It has been known as the “Colorado of the East” in the past due to its climate, and Plainfield is also known as home to many famous professional athletes.
Plainfield is a suburb of New York City and gives residents an urban suburban mixed feel. Most residents of Plainfield rent their homes, and Plainfield is a place where there are many restaurants, coffee shops, and parks. It is home to many young professionals and families. Right now, Plainfield has a median home value of $257,200 and a median rent of $1212.
Right now, Plainfield is a seller’s market. Supply is exceeding demand in Plainfield and there are more people looking to buy homes than there are homes available. Real estate investors in Plainfield are getting into bidding wars over the best real estate in Plainfield since most of the country is in a housing bubble from the pandemic.
Real estate investors would benefit from hard money loans. Hard money loans are loans predominantly used for real estate transactions like fix and flips, long-term rentals, and construction projects. Hard money loans have a huge advantage for real estate investors in seller’s markets: they can be approved very quickly. Compared to traditional mortgage loans, which take a month or more to be approved, hard money loans can be approved within a couple of days.
The reason hard money loans can be approved so quickly is that the property is the asset. Hard money loans don’t rely on the financial standing of the applicant as much as traditional mortgage loans do. Hard money loans usually require a minimum credit score of 600 to 620, but the majority of hard money loans also use the property as collateral. The default process is different between hard money loans and traditional mortgage loans. 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 initiates a very costly and lengthy foreclosure.
Because of this, there are lots of cons to hard money loans too. Hard money loans have interest rates of 8–15%, which are significantly higher than mortgage rates of traditional mortgage loans (which usually have interest rates above 4%). Hard money loans also have repayment periods of more or less a year, which are significantly higher than repayment periods of traditional mortgage loans. Lastly, hard money loans have LTV ratios of 65–75%, which are much lower than the LTV ratios of traditional mortgage loans.
That’s also why it’s so essential to trust only the most reliable hard money lenders. Some hard money lenders have reputations as loan sharks because they tack on extra fees, like underwriting fees, origination fees, and closing costs. Not only that, but new investors in particular might have a really hard time getting hard money loans because most investors require a successful history of investments. New investors often have to rely on factors like financial standing to make themselves more appealing borrowers and make sure they’re not hit with ridiculous interest rates.
We have you covered at Hard Money Lenders IO. These are the best hard money lenders in Plainfield.