Why You Should Consider Hard Money for Construction
As a New Jersey investor, you have several options for funding for your projects. Not all lenders and loan programs are equal, so it is important to find the best option for you. Hard money loans are a form of short-term funding designed to provide the money you need to quickly purchase the land, build the property, and sell the home or roll into a long term loan.
Hard money lending relies more on an evaluation of your project and real estate experience, instead of traditional underwriting criteria. Investors and contractors should be able to prove that they have the appropriate experience for the deal and enough liquidity to carry out the project according to plan. This distinguishes this type of loan from a conventional loan, for which you need to spend more time proving your personal creditworthiness.
When you apply for a hard money loan for new construction, the process is structured significantly differently. Although you still must establish a few parameters such as the value of the land and your ability to make a down payment, the rest of the approval process is often much quicker. Many investors find hard money loans to be more efficient than other lending options, allowing them to catch a great deal in the nick of time.
The New Construction Loans That NJ Investors Prefer
In order to help you through the loan process, experienced investors partner with Asset Based Lending — a lender that understands what you need and can make it happen quickly. Our loan officers and underwriters have experience in New Jersey’s local markets, which means that they can more accurately confirm and advise on your project details. Investors come back to us each time they need a loan because of our ability to move as fast as they need us to. We can get your deal approved within 24 hours and closed in 10 days or less.
In addition to our quick processing capabilities, our residential and mixed-use investment property construction loans feature the following benefits:
- Loan sizes ranging from $75,000 to $3 million
- Competitive interest rates starting at 8% to 9%
- 100% construction financing
- Loan terms averaging 12-18 month terms
- No prepayment penalty
- Professional draw management
It only takes a short conversation to determine if your project may qualify for one of our loans. If it does, we’ll get started immediately.
The right kind of loan may be the difference between a great project and one that causes you stress. To learn more about our lending process or to prequalify, contact Asset Based Lending today.