Ramapo is a city in Rockland County and a suburb of New York City. It has a population of almost 150,000 people, making it one of the biggest towns in New York. Ramapo is considered one of the safest places to live in New York, and is also very accesssible to New York City.
Niche says Ramapo has a dense suburban feel where most people own their homes. It is a diverse city with lots of restaurants and green space, and it is home to both young professionals and families. It is a family friendly town that is considered a great place to raise a family. Ramapo has a median home value of $448,800 and a median rent of $1,426.
Right now, Ramapo is a neutral market. Homes stay on the market a typical length of time and prices tend to be reasonable. In Ramapo, supply is meeting demand, and does not favor either buyers or sellers.
Hard money loans might be the best way to invest in real estate in Ramapo. These loans are mainly used for real estate transactions like fix and flips, long-term rentals, and construction projects. Hard money loans have a huge advantage of having very fast speeds of approval. Hard money loans can be approved within a few days, whereas traditional mortgage loans can take a month or more to be approved. To compete for the best properties in Ramapo, real estate investors need to acquire fast financing, and real estate investing is a world where time is often money.
The reason hard money loans can be approved so quickly is because they’re based on the after repair value of the property. Hard money loans don’t depend on financial standing as much as traditional mortgage loans do — all borrowers need is a minimum credit score of 600 to 620. New investors might need to rely on financial standing a bit more than experienced investors because hard money lenders rely on investors’ experience with real estate transactions.
In a hard money loan, if a borrower defaults on the loan, the lender takes on the property in a speedy process. This is significantly faster and more expeditious than a traditional mortgage loan, where if a borrower defaults, the bank initiates a very tedious and expensive foreclosure.
Since hard money loans are so unregulated and risky for lenders, they have many disadvantages, and these disadvantages manifest themselves in unforgiving rates and terms. Hard money loans have interest rates of 8–15%, repayment periods of approximately a year, and LTV ratios of 65–75%. Traditional mortgage loans are much more forgiving, with interest rates just above 4%, repayment periods of 15 to 30 years, and LTV ratios of approximately 80%.
Because of the unregulated nature of hard money loans, not every hard money lender can be trusted. Some have a reputation as loan sharks because they tack on extra fees or don’t communicate well about fees like underwriting fees, closing costs, and origination fees. New investors have to be careful not only because a lot of lenders don’t give to new investors, but because many hard money lenders who do will charge high interest rates and similar unforgiving rates and terms. As a result, new investors have to make themselves more appealing borrowers through strong financial standing or higher down payments, unlike more experienced borrowers.
We at Hard Money Lenders IO have made a list of the best hard money lenders in Ramapo, so you can acquire fast and ideal financing for your real estate investment.