Creative Financing Suggestions in NJ

2 Replies

I live in the Jersey Shore area of NJ and I am interested in a house that was damaged by Sandy and is in a high flood zone. This house would be worth more if it was knocked down and rebuilt (as is the flood insurance is high, BFE is 9ft) however I don’t have the funds to do this on my own. After talking to the realtor and a contractor it would be roughly 500k to purchase and rebuild, comps in the area show the house should sell for at least 700k new. Hard money loans seem really expensive with the interest fees and points. Can anyone share the details of a hard money loan they used? Or any other thoughts and suggestions on this, maybe seller financing? Thank you!

Hi Suzanne,

My family specializes in House lifting. We picked up a property in Union beach (first flip!) and we just raised it and will be moving it backwards and to the side to make room for a second property. 

Are you sure the property couldn't be salvaged? It may be cheaper to raise the property and rehab the existing home.

Be awesome,


Hard money loans can be expensive if you don't use them properly. For example if you hold on to the property too long being unable to sell it. But if you get the deal done quickly enough and you understand how the loan is structured then hard money can be a good way to make a deal happen that otherwise wouldn't. Like anything else, you're paying for a service. In this case that "service" is the provision of money that you don't have. Also make sure that you talk to a couple different lenders. There will be similarities, but they won't all have the same loan structures.

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