Utica is the 10th biggest city in New York and the county seat of Oneida County. It has a population of just over 60,000 people and is closest to Syracuse. Utica is 55 miles east of Syracuse, and historically, the city went from being a river settlement of the Mohawk Nation of the Iroquois Confederacy, as well as European-American settlers from New England.
In the late 20th century, Utica was known as “Sin City” because of corruption in the local government. Since then, however, Utica has not been associated with organized crime and corruption since.
As for real estate, Utica is known as one of the best places to invest in real estate in Oneida County. Utica gives people a suburban feel and most people in the city rent their homes. As home to Utica University, there is rich nightlife with a lot of bars, restaurants and parks in Utica, and Utica is known for having great public schools. It is known for its great nightlife and diversity as a city.
Utica is also very affordable. It has a median home value of $95,900 and a median rent of $725. Recently, home values have been appreciating substantially. Right now, Utica is not a buyer’s or seller’s market. It is a neutral housing market, which means homes stay on the market for a typical length of time and prices are reasonable.
Hard money loans might be the best way to invest in real estate in Utica. Hard money loans are otherwise known as last resort loans, but their biggest advantage is they can be approved very quickly. As opposed to traditional mortgage loans, which can take more or less a month to be approved, hard money loans can be approved within a couple of days.
They can be approved so quickly because they’re based on the property and the after repair value of the property, not the financial standing and credit score of the borrower. To be clear, most hard money lenders still have minimum credit scores of 600 to 620, but hard money loans use the property as collateral.
If a borrower defaults on a mortgage, the bank initiates a lengthy foreclosure process that can cost a lot of money. However, if a borrower defaults on a hard money loan, the lender takes on the property.
This means a hard money loan is inherently very risky. Hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have 8–15% interest rates, approximately one year repayment periods, and 65–75% LTV ratios, which are significantly more unforgiving than mortgages, which have just over 4% interest rates, 30 year repayment periods, and 80% LTV ratios.
However, not every hard money lender is trustworthy. Some hard money lenders have reputations as loan sharks. Others tack on extraneous fees or don’t communicate well about fees upon signing, like underwriting fees, closing costs, and origination fees. Not every hard money lender gives to new investors since most require a track record of successful investments. New investors usually have to rely on financial standing since they can’t rely on their real estate experience.
At Hard Money Lenders IO, we have you covered — we have made a list of the best hard money lenders in Utica. These are the best partners for your real estate transaction.