White Plains is a suburb of New York City in Westchester County, and it is the 11th biggest city in New York state. It is considered a commercial hub of New York State and has a nickname of “The Birthplace of New York State.” In 2014, Movoto ranked White Plains the third best place to live in New York state.
Niche says White Plains is one of the best places to live in New York. It has great schools, is a great place to raise a family, and has terrific nightlife. It is also a very diverse place. It gives residents an urban feeling with many bars, restaurants, and green spaces. It is home to many young professionals own their homes in White Plains. The median home value is $568,400 and the median rent is $1,701, which means White Plains can be an expensive place to live.
Right now, White Plains is a buyer’s market. Supply is greater than demand. Homes are selling for low prices and take a long time on the market, and the market is currently favoring buyers.
Hard money loans might be the best way to invest in real estate in White Plains. In a housing bubble and seller’s market, hard money loans have the advantage of having very fast speeds of approval. However, in a buyer’s market, circumstances are different for hard money lenders.
In buyer’s markets, hard money loans have the advantage of being approved for cash only properties, exclusive properties on the market where the buyer can only purchase the home with cash. Cash only is what it sounds like in real estate, but the actual term is a bit more complex. It means the home did not qualify for traditional financing may be in such a state of disrepair the bank did not qualify the home for a mortgage.
Hard money loans might be considered cash because they’re not traditional financing, but also because by nature, they’re loans used for repairing distressed properties. Hard money loans are often used for real estate transactions like fix and flips and long term rentals, and they use the property as the asset. Real estate investors in buyer’s markets can make significant profit making a property in disrepair appealing for renters and buyers. Since hard money loans use the property as collateral, if a borrower defaults on a hard money loan, the lender owns the property, which is a much more expedient process than a borrower defaulting on a mortgage.
This means lenders also take on significant risk. Hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional mortgage loans. They usually have interest rates anywhere from 8–15%, which is much higher than interest rates for mortgage loans at just over 4%. Hard money loans also have LTV ratios between 65–75%, which is higher than the LTV ratios for traditional mortgage loans. Lastly, hard money loans have repayment periods of around a year, which is much shorter than the 30 year repayment periods of traditional mortgage loans.
It’s essential to only trust the best hard money lenders. Not every hard money lender is trustworthy because of the unregulated nature of the industry. Some lenders might tack on extra fees like underwriting costs, closing costs, and origination fees, while others don’t communicate well about fees. New investors might have a hard time getting hard money loans and need to rely on financial standing since they can’t rely on experience.
At Hard Money Lenders IO, we have you covered — here are the best hard money lenders in White Plains.