New Jersey: A Top Choice For Fix & Flip Investors
This area is a favorite for real estate investors thanks to the growing demand and high average ROI. The mix of urban and suburban housing attracts home buyers from around the country, making it a desirable location for fix and flip projects. According to ATTOM Data, over six percent of the state’s home sales in 2017 were fix and flips, and in Q2 of 2019, over 28 percent of home sales in Camden County were fix and flips! Based on the short amount of time spent on the market and high gross ROI, the ten best cities in the state for fix and flips are statistically North Bergen, Belleville, Kearny, Newark, Tom’s River, Willingboro, Mercantville, and Gloucester City (although different cities/towns can me more beneficial to fix and flip investors depending on their unique experience level and busines model).
Due to the competitive real estate market in here, ABL is committed to providing flexible underwriting and closing deals in 10 days or less to make sure you never miss an investment opportunity.
Fix and Flip Loan or Conventional Mortgage?
When you buy a residential property to rehab and sell, you have a variety of house flipping loans you can choose. The right one can make all the difference in how you fast you complete the project. Many people apply for a conventional mortgage or an FHA-backed 203k loan to provide the money they need to buy the property and fix it. Since these mortgages are generally targeted at owner-occupied properties, they emphasize credit rating and ability to pay the loan over time. This makes the underwriting process take much longer- up to several months.
By comparison, fix and flip loans come from a private money lender and primarily uses the viability of the project to determine eligibility. This allows loans to be approved quickly- as fast as 48 hours in some cases. The short-term loan is designed to get you the money you need at the exact time you need it. Investors get a lump sum to buy the property, then periodic draws to pay for work according to the project timeline. Terms for these hard money estate loans are usually different from conventional mortgages, with higher interest rates and larger down payments. However, there are no penalties for early payoff, allowing investors to finish their project quickly and move on to the next one!
Benefits of Hard Money Loans
With several loan options available, it’s important to highlight the advantages of borrowing from a hard money lender to help you make an informed decision. Each real estate investment is different, so choosing the right loan can save you time, money, and headaches. If you’re interested in fix and flip financing, then hard money loans can offer you fast loan approval. Approval time can make the difference between funding your next success or missing an opportunity. Traditional loans can take up to several months, but hard money loans can take days! Hard money loans are flexible with credit scores and W-2 income by taking your property and plan of action into account, where bank loans are strict about the numbers they will accept.
Hard money loans typically have shorter loan terms, lasting 12 months with no early payoff penalty. The draw money is accessible quickly, as fast as three days from the time its requested, which helps avoid project delays. The flexible underwriting and steady access to funding allows investors to scale their business effectively and efficiently. Banks tend to avoid complicated renovation projects and private money lenders can get cold feet, so hard money lenders for flipping houses like Asset Based Lending are a reliable and affordable option.
Why Do Investors Choose Asset Based Lending for Fix and Flip Loans in NJ?
Our hard money loans offer the reliability of an institution with the speed and flexibility of a private money lender. We understand how much time and effort these projects take, so we work tirelessly to provide the highest quality service and advice to our borrowers. Our team of experts are always ready to discuss your project and determine your best course of action, which is why we have so many repeat borrowers!
We customize each loan to match your project, but every ABL loan includes:
- Preapproval within 24 hours of initial prequalification
- Closing within 10 days on average
- Flexible loans sizes from $75K to $2.5M
- No prepayment penalties
- Fast draw turnaround
- Direct access to the decision-makers
With our competitive rates and knowledge of the local real estate market, we can help tailor fix and flip hard money loans that best suits your business.
When you are a serious real estate investor, you need fix and flip lenders that work as hard as you do. Contact us today and experience why Asset Based Lending is the best hard money lender.
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