Website design By BotEap.comFinding hard money lenders is a bit easier in the New York area than in other areas. One of the main reasons for this is that these lenders generally try to operate in familiar territory and in an area like New York where there is a lot of real estate for consideration. So here the lenders will also have a lot more customers rather than the relatively sparsely populated areas. This naturally creates a greater “pull” for individuals to come and do business here.

Website design By BotEap.comHard money lenders are the individuals and businesses that will lend you to buy a home, for example, when more traditional financial organizations won’t. This can be for any number of reasons ranging from poor credit ratings to wanting to buy the house in a remote area that traditional organizations are not comfortable with.

Website design By BotEap.comSome tips for finding hard money lenders in the New York area:

Website design By BotEap.com1. The phrase hard money loans sounds a bit intimidating and you will find the same thing goes by other names. So instead of searching for hard money lenders, search for creative financing in the New York area or search for crowdfunding while browsing the web.

Website design By BotEap.com2. Go through the local newspaper classified ads and there, instead of looking for hard money lenders, look at the description more closely. Be careful with words that talk about loan problems, private money, your dream home, etc.

Website design By BotEap.com3. Call your mortgage broker and ask if they have contacts with private investors or know of people who might know hardcore lenders.

Website design By BotEap.com4.Make full use of the corridors in this case. On the web, while you may not find many hard money lenders in the New York area directly, if you do a search, you’ll find that the search results will give you some links to individual hard lender blogs. Many of these people are not directly in the business, but will know people or companies that can often help you.

Website design By BotEap.com5. When looking for hard money lenders you may (from time to time) end up contacting a loan predator, these are individuals or companies who make the deal in such a way that there is a high probability that you will default on your payments. You should be careful and make sure you are comfortable with your reputation by looking up the contact numbers of other people who have been made loans in the New York area and, when possible, go and meet them. Another way is by making sure the equity you have in your home stays around 50% and in most cases you should be safe.

Website design By BotEap.comCan I get a loan to buy commercial property in New York?

Website design By BotEap.comWhile hard money lenders typically make loans for the purchase of a home or residential property, many companies are now devising ways and means by which they can creatively design a loan so that people can also purchase land or commercial property.

Website design By BotEap.comWhat are the terms of these loans?

Website design By BotEap.comThe interest rate is typically higher, around 12-18%, and the loan is a first mortgage in most cases with the balloon payment due after a year or two. These loans are characterized by their high fee and a relatively lower loan-to-value ratio. In addition to the interest rate, there is a fee that can be up to 8% of the loan amount. Hard loan lenders want to keep your loans safe at all times, and for that reason, they must ensure that you have enough equity in your home in the event of a default, they can sell and repossess your loan.

Website design By BotEap.comAll in all, even at the risk of stating the obvious, hard money lenders should be your last resort, but they are not loan sharks and can be used to escape a sticky situation if you assess your requirements and financial position correctly.