Looking to kickstart your next real estate project in Brooklyn with a hard money loan? Whether you’re eyeing a brownstone renovation in Bed-Stuy or planning to transform a Park Slope fixer-upper into a rental property, hard money lenders in Brooklyn offer a fast and flexible financing option. These loans can be a game-changer, especially for those with tight deadlines, limited capital, or credit issues. But hard money loans aren’t just for seasoned investors. If you’re in a situation where you need to bridge the timing gap between buying and selling a home, there are alternatives that can help leverage your home’s equity. This guide will walk you through the essentials of hard money lending in Brooklyn, helping you figure out if this financing option fits your investment goals. A hard money lender is a private individual or company that provides short-term loans secured by real estate. Unlike traditional lenders that focus on a borrower’s credit history, hard money lenders in Brooklyn prioritize the property’s value. They typically work with clients like house flippers and those investing in rental properties. Hard money lenders use the after-repair value (ARV)—the estimated value of a property after renovations—to determine loan amounts. They usually lend a percentage of the ARV to manage risk. Interest rates on hard money loans are higher, typically between 8% to 15%, and include fees like origination costs. If a borrower fails to repay, the lender can seize the property to recover their investment. If you’re considering real estate investment in Brooklyn and need a fast, flexible financing option, hard money loans might be a good fit. Here’s a quick overview of how these loans work:What is a hard money lender?
How does a hard money loan work?
