Everyone I talk to has their own Brooklyn. You’ve got the Dumbo/ Williamsburg crowd, which is what most people think of now when they of Brooklyn (well, that and Park Slope). But this is a huge area—over 2 million people live here. From Bushwick to Brighton to Bed-Stuy, it’s a wildly diverse, vibrant area. And it’s got a real estate market to match.
No matter where you are looking for a house, be it Sunset Park or Sheepshead Bay, you are looking for a few things: a house you can afford to buy and fix up that you think you can sell quickly for a higher price. That’s the whole key to your New York real estate business. And, while attracting motivated sellers is obviously paramount, you also need liquid assets.
If you have a deal that you need to move on, you need to move fast. You need hard money. Of course, you don’t want it from just anyone. You want the best possible rates and terms from a lender you can trust. Who you choose is up to you, but here are some hard money lenders in Brooklyn that I have used and who I trust and respect. No matter which part of Brooklyn you’re investing in, that’s what matters.
Three of the Top Hard Money Lenders in Brooklyn NY
Hard money lenders in Brooklyn run the gamut of reputation and value. That’s why you want to check them out thoroughly before signing on the dotted line. You don’t want to get caught up in a financial agreement that you can’t live with.
Of course, a trustworthy hard money lender will be looking at you the same way. They don’t want to shell out money for a deal that’s a bust. But, what do they for when determining rates and terms?
Work History. How many houses have you bought and sold successfully? What’s your track record?
Creditworthiness. Not all of them care about credit, but some will. But, they are far more amenable about lower or bad credit rates than most other financial institutions.
Available Cash. Some hard money lenders want money down. Not all of them do, but of course, you can often get more favorable terms the more liquid you are.
At the end of the day, however, the project is what matters most. If you can show enough upside to rehabbing a distressed house in Brooklyn and a plan to get it done, most hard money lenders will want to back you. So, with that in mind, you’ll probably want to shop around to find a one that works best for you. Here are three that I work with locally.
I just mentioned available cash—you might not have any. It might be tied up in other projects. ResCap is a company that understands that you might have liquidity issues. That’s why they don’t necessarily require money down.
What they offer is a fixed rate for a certain type of property. You can apply for up to $250,000 for a residential property without having to specify the house, just the type. It’s fairly unique. What’s also unique is that they set rates regardless of your cash. It’s 100% up to 70% of ARV, at 10% interest, for a 9-month term.
I like that you know what you get. Their 14-day turnaround is pretty sweet, too.
RCN Capital is convenient for Brooklyn because of the wide range of their loans. They can go from as low as $50k to as high as $2.5 million. That’s really helpful if you are already pretty successful and are buying more expensive homes in Park Slope or other higher-end neighborhoods. Obviously, if this is your first project, you won’t be eligible for the cool couple million, but you can get a loan that works for you.
RCN has a 12-month loan period for up to 90% of the purchase price, and 100% of renovation costs. That 100% is really nice if you have multiple projects going and you don’t want to have all your funds tied up—especially if you are putting in expensive upgrades so the house is ready for today’s millennial lifestyle. You might need an outdated electrical system, for instance, to handle the tech-heavy load in order to sell a home. It’s nice to know you can get a loan to handle it all.
LendingHome was created especially for people in the fix-and-flip business. One of the best parts about their offerings is that they recognize the need for speed. You can get money in as little as five days.
They’ll also lend as much as $1 million per deal, which is great because New York is one of the most expensive states to invest in. But, as they will tell you, it’s also the state with a good stock of older houses that can provide some of the highest ROI. With LendingHome backing you, it’s possible to achieve your real estate investing goals handily.
Obviously, there are more than three hard money lenders in Brooklyn. And, they all have different terms, different rates, and different standards. Finding the right one is almost another full-time job. Unless, like me, you have exclusive access to a tool that has them come to you.
The Best Way to Get Hard Money Loans
And, luckily, that’s not hard to get. You see, as an independently owned and operated HomeVestors® franchisee, I use the proprietary software platform, UGVilleTM, which gives me access to some of the nation’s top hard money lenders. All you have to do is plug in information about the house you want to buy, and you’ll be contacted by lenders offering you funding.
What does that mean? It means they’re competing for your deal. You get to choose the terms and rate that works best for your project. And, it means you don’t have to go to a dozen different websites to apply. You just have to use this tool.
Brooklyn is huge. You’re already spending a lot of time finding houses with potential. But, if you want to spend a lot less time finding hard money lenders in Brooklyn, request information about becoming a HomeVestors franchisee.
Each franchise office is independently owned and operated.