Queens is a great place to invest in real estate. It is another borough of New York City, known as Queens County, and is a place that has a population of over 2.4 million people according to the 2020 census. If Queens were a city by itself, it would be the fourth biggest city in the United States. It is the most linguistically diverse place on Earth due to having 47% foreign-born residents and is also home to the two major airports of New York City — John F. Kennedy Airport and LaGuardia Airport.
Queens is also home to Citi Field, where the New York Mets play. It is also home to the site of the U.S. Open and more. It has very diverse housing where real estate investors can get a great return on investment. Queens is the third fastest-growing housing market in New York, much like Brooklyn several years ago. Many people who cannot live in Manhattan live in Queens, since everything in Queens is accessible through subway.
According to Niche, Queens is a place with great public schools, giving residents a dense urban feel, and is a place where most people rent their homes. In Queens, there are lots of bars, restaurants, coffee shops, and more. It is home to many young professionals. Right now, the median home value of Queens is $543,800, while the median rent is $1,583.
Queens is a buyer’s market right now. That means supply is exceeding demand in Queens and homes are selling for lower than listing price and staying on the market a long time.
Hard money loans might be the best way to invest in real estate in Queens. In seller’s markets, these loans usually have the advantage of being approved very quickly. But in seller’s markets, it’s different — hard money loans have the advantage of being used for cash-only properties. Cash-only in real estate means a real estate investor can only use cash to pay for the property. But it also means the home is in such a bad condition the home does not qualify for traditional financing.
Often hard money loans can qualify as cash in cash-only purchases because they’re not traditional financing. Hard money loans are an alternative source of financing that are essentially used for repairing homes in disrepair. They are often used for fix and flips, long-term rentals, and repairs of distressed properties. Hard money loans can be used to turn distressed properties into more appealing ones for renters, especially in Queens.
Hard money loans use the property as the asset and collateral. They rely on the after repair value of a loan to determine the terms and rates of the loan. Hard money loans don’t rely on financial standing as much as traditional mortgage loans do. If a borrower defaults on a mortgage, the bank forecloses the home But if a borrower defaults on a hard money loan, the lender takes on the property.
This means hard money loans are inherently very risky, and they have lots of disadvantages as well. Hard money loans have interest rates of 8–15%, which are significantly higher than interest rates for traditional mortgage loans. They also have repayment periods of more or less a year and LTV ratios of 65–75%.
It’s important to only trust the very best hard money lenders, which is why. we at Hard Money Lenders IO have made a list of the best hard money lenders in Queens.