When looking for a hard money lender in New Jersey, compare their reputation, location, and loan terms.  It makes sence to work with a local or regional company that knows the market.   Referrals from other investors are a great way to find hard money lenders or private lenders.   Most lenders attend real estate investor groups and Meetup groups.  Mortgage Brokers also work with direct lenders or you can ask Real Estate Agents and Title Companies.  Finally, you can search for ‘hard money lenders near me’ online.   Make sure to check their online reviews and if they are local.  Most hard money lenders are actively involved in helping real estate investors succeed by providing content on youtube, social media or through podcasts.

Hard money lenders tyically don’t have minimum credit score requirements because they do not focus as heavly on a credit score like a bank would. Yes, many hard money lenders pull credit, but it is usually not the primary factor in their lending decisions. Unlike traditional lenders, hard money lenders focus more on the real estate property along with the property’s value and equity than the borrower’s credit score. A higher credit score can sometimes lead to better loan terms, lower interest rates, or reduced down payments. But even borrowers with low credit can still qualify if they have a good project and a solid game plan (have the ability to execute/perform on their project).

Depending on your situation a Hard money lender can be worth using, but they come with pros and cons. They offer fast, asset-based loans with flexible terms, making them ideal for real estate investors, house flippers, rental property owners and some commercial property owners. However, they often come with higher interest rates, shorter repayment periods and additional fees. Whether they are worth it depends on your situation, time frame, credit score and ability to manage the loan terms effectively.  Most real estate investors are opportunistic and would rath pay slightly more for the capital (and use a hard money lender)  in order to secure the real estate investment project.

Hard money lenders do require a down payment on a purchase, typically ranging from 10% to 30% of the property’s purchase price. The exact amount depends on factors like the lender’s risk tolerance, credit score, the loan-to-value (LTV) ratio and the borrower’s experience. In some cases, experienced investors or those securing properties well below market value may negotiate lower down payments or even 100% financing with additional collateral.

A good interest rate for a hard money loan in New Jersey typically falls between 10% and 16%, though rates can vary based on the lender, loan-to-value (LTV) ratio, borrower experience and credit score. Points (upfront fees) usually range from 2% to 6% of the loan amount. While hard money loans have higher rates than traditional mortgages, securing a lower rate depends on other qualification factors including lower LTV ratios.

Hard money lenders use real estate as collateral. They will want to be a 1st lien position or 1st mortgage on the house or commercial building. Most lenders only lend on investment real estate instead of primary residences. Hard money loans are much quickly and simpler than a standard loan because the borrower is using the property as collateral.

One of the greatest things about a hard money loan is the speed at which you can get one. Approvals typically happen within 24 hours, and settlements can occur in less than a week. Many loans we close are within a few business days. However, remember that the lender has due diligence and underwriting to conduct depending on the overall project. This may include property inspections, ordering and inspecting title work, and drafting lender documents. Depending on the circumstances, this could take anywhere from a few hours to a week, but in a rush situation, we can speed up the process to accommodate you. Hard money lenders are know for speed in order to close on your timeline.

Most hard money lenders that use private capital don’t require a standard appraisal. However, they may use a broker price opinion (BPO), an internal valuation, or a comparative market analysis instead of a full formal appraisal. These reports generally only take 1-2 days. The focus is primarily on the property’s value rather than the borrower’s credit history. Banks and institutionally backed lenders typically require a full appraisal. If you are a real estate investor in New Jersey a hard money loan is probably a good option.

When looking for a hard money lender in New Jersey, compare their reputation, location, and loan terms. It makes sence to work with a local or regional company that knows your market. Referrals from other investors are a great way to find hard money lenders or private lenders. Most lenders attend real estate investor groups and Meetup groups. Mortgage Brokers work with direct lenders or you can ask Real Estate Agents, and Title Companies. Finally, you can search for ‘hard money lenders near me’ online. Make sure to check their online reviews and if they are local. Most hard money lenders are actively involved in helping real estate investors succeed by providing content on youtube, social media or through podcasts.

Most hard money lenders don’t report to the credit bureaus but they do pull credit. They do not focus as heavly on a credit score like a bank would as its not the primary factor in their lending decisions. Unlike traditional lenders, hard money lenders focus more on the property’s value and equity than the borrower’s credit score. A higher credit score can sometimes lead to better loan terms, lower interest rates, or reduced down payments, but even borrowers with low credit can still qualify if they have substantial collateral (a suitable property) and a solid investment plan (have the ability to execute/perform on their project).

When presenting a deal to a hard money lender, focus on an overview of the project with a concise summary of the property, including its location, type, and current condition. Highlight the loan amount needed, the purchase price, after-repair value (ARV), and your planned exit strategy (e.g., flip, refinance, or rental). Provide details on your experience, creditworthiness, and any collateral you’re offering. Be prepared with a clear budget, timeline, and comps to support your valuation.

Hard money lenders determine ARV by analyzing comparable sales (comps), market trends, and the scope of planned renovations. They may also utilize help from a Realtor to help with a broker price opinion to validate projections. Your experience and credibility can influence their assessment. Typically, they lend around up to 65% of the ARV to maintain a safe margin against market fluctuations.