Yonkers is the third biggest city in New York after New York City and Buffalo and is known as an inner suburb of New York City. It is known for many attractions like Tibbetts Brook Park and access. to the Hudson River, and also known for being a great place to live for families, young professionals, and more.
Being very close to the water, Yonkers is known for its waterfront investment as well as its vibrant and historic communities. It is also very close to New York City and accessible to New York City. Real estate investors can profit off rental properties in the state as a result.
According to Niche, Yonkers gives an urban city feel and is a place where most residents rent their homes. There are many restaurants and coffee shops in Yonkers, and the city is home to many young professionals and families. It has a median home value of $403,900 and a median rent of $1,383, and Yonkers is known as one of the most diverse suburbs of New York.
Right now, Yonkers is a buyer’s market, which means the supply of real estate is outpacing demand. Prices are lower and homes tend to be on the market longer in Yonkers compared to other places.
Hard money loans might be the best way to invest in real estate in Yonkers. Hard money loans are also known as short-term bridge loans and last resort loans, but they are loans that are mainly used for real estate transactions like fix and flips, long term rentals, and repairs of distressed properties. These loans usually have the advantage of fast approval speeds in seller’s markets, but in buyer’s markets like Yonkers, hard money loans have very different advantages.
Hard money loans can be used to purchase cash-only properties. Cash-only in real estate means only cash can be used to purchase the property, but it also means the home is in such a state or disrepair the bank would not touch the property.
In buyer’s markets, real estate investors can make a significant profit from buying these cash-only properties, repairing them, and turning them for significant profits. Hard money loans often qualify as hard money loans for a plethora of reasons — they are essentially made to repair homes in disrepair, and hard money loans are not traditional financing, so many sellers treat investors who use hard money loans as the equivalent to cash buyers.
Hard money loans use the property as the asset and collateral, not the financial standing of the borrower. Hard money loans still require minimum credit scores of 600 to 620, but since they rely on the property, the default process is different between hard money loans and traditional mortgage loans. If a borrower defaults on a hard money loan, the lender takes on the property. But if a lender defaults on a mortgage, there’s a lengthy and costly foreclosure process.
These loans have plenty of drawbacks as well. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%, which are much more unforgiving than traditional mortgage loans.
It’s important to trust only the best hard money lenders who will give you the best possible terms and rates for hard money loans. We have compiled a list of the best hard money lenders in Yonkers.