Real estate investors and homeowners alike are seeking out New Jersey hard money lenders for rehab loans. But why?
After Hurricane Sandy, many homeowners simply walked away from their homes. With no assistance, and thousands of dollars in repairs, some victims of Sandy who had owned their homes for generations, just let them go.
This factor combined with the huge backlog of foreclosure inventory in New Jersey that is slowly being released, have both created a tremendous need for hard money lenders in New Jersey.
What who are the “hard money” lenders? Any non-bank lender, whether it be an institution or an individual, is classified as a private money lender. These private money lenders are most commonly referred to as “hard money” lenders. These lenders provide rehab loans for properties that would never qualify for a bank loan.
Real estate investors take large risks purchasing bank-owned properties or properties destroyed by Hurricane Sandy. For this reason, real estate investors must utilize private money lenders to purchase these properties and fix them up.
A Realtytrac report released in October of 2012 showed a 400% increase of foreclosures starts in New Jersey from 2012 to 2011. This backlog of foreclosure inventory is another factor that has caused real estate investors to seek out New Jersey hard money lenders.