Hard Money Lenders in Southampton, New York

By admin, Hard Money Lenders IO

Hard Money Lenders in New York

Southhampton is a great place to invest in real estate for a variety of reasons. It is the largest village in the Hamptons, known for its waters and beaches and vacation homes. It is located close to the southeastern edge of Long Island, and has a population of just under 70,000 people. Also, one of the most popular universities in New York, Stony Brook University, has a campus in Southampton centered around the arts, writing, marine and atmospheric science, and other biological sciences.

Niche says Southampton gives residents a rural feel, and most people in Southampton own their homes. It is home to both young professionals and retirees, and Southampton is known for having great nightlife, diversity, and terrific public schools. It is considered a great place to raise a family, like the rest of Long Island. Southampton’s homes have a median home value of $671,600 and a median rent price of $1,819, which make it a very expensive place to invest in real estate. 

Southampton, and the Hamptons in general, is a great place to invest in real estate because of the reputation of the Hamptons as a terrific real estate destination, as well as the burgeoning real estate market filled with tons of real estate professionals.

As of April 2022, Southampton has become a buyer’s market. Prices in the town are lower and homes tend to stay on the market longer. Supply is exceeding demand in Southampton, and the market is favoring buyers.

This means hard money loans might help you invest in real estate in Southampton. Usually, in a housing bubble and seller’s market, hard money loans are advantageous because they have a very fast speed of approval — but in a buyer’s market, hard money loans give buyers the advantage of qualifying for cash-only properties.

Cash-only means what it sounds like — you can only use cash to pay for the property. But in real estate, the term is a lot more complex than that. Cash-only means the home does not qualify for traditional financing, and is usually in such a state of disrepair banks don’t want to touch the property at all. 

Hard money loans often qualify as cash when buying cash only properties because they’re loans used for real estate transactions. They use the property as collateral because they predict the home is in some sort of disrepair — a hard money lender is going to use the projected after repair value of the property to dictate the loan’s terms and rates. Hard money loans can then be used to finance purchasing a home and then repairing it. 

Since hard money loans use the property as an asset and collateral, they’re considered much riskier than traditional mortgage loans. They have higher interest rates, shorter repayment periods, and lower LTV ratios than mortgages. Hard money loans have interest rates of 8–15% on average, repayment periods of more or less a year, and LTV ratios of 65–75%. By contrast, mortgages tend to have interest rates just above 4%, repayment periods of 15 to 30 years, and LTV ratios around 80%. 

It’s essential to only trust the best hard money lenders because not every lender is trustworthy. Some might tack on extra fees and points, while others don’t communicate well about these fees. Others don’t lend to new investors because they require a successful track record of real estate investments — but new investors can be appealing investors by showing a strong credit score and financial standing.

At Hard Money Lenders IO, we have you covered. Here are the best hard money lenders to finance your real estate transaction in Southampton.

Hard Money Lenders IO

The team at Hard Money Lenders IO have been lending on investment properties to real estate investors. Every member of our team is dedicated to providing the clients we serve with fast, affordable financing solutions so that they can have access to the funding they need. Hard Money Lenders IO has adjustable guidelines and customized lending programs for borrowers.

Loan Amounts from
100K to 5M+

Rates starting at

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LendingOne is a private money lender, specializing in the financing of non-owner occupied residential investment properties. Lending One provides Mortgage Brokers and Real Estate Investors with a fast and cost effective funding source for their real estate investment needs.

LendingOne uses our own capital, an easy online application and our extensive real estate experience to provide quick and reliable funding for our clients.

Our Loan Programs include:

Fix & Flip
Buy & Hold
Rate & Term
Cash Out Refinance
Bridge Financing
Wholesale Lending

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