Private mortgage lenders – any lender for that matter – want to make sure that borrowers not only repay their loans, but also pay them on time, so lenders can deploy their money elsewhere. The best way to ensure repayment is to lend to responsible and competent borrowers who are vested in the transaction. When it comes to private mortgage lenders, to be “responsible” and “competent” means not only being able to put a great investment property under contract, but also to realize your rehab vision on time and within budget. In other words, we want to work with borrowers who are well positioned to make a profit.
You’ve done your homework and found a property that you think may be a good deal. It’s time to ask the seller a few questions and get a full picture of what’s going on. This information will help you make decisions as to how much the property is worth now and how much you can get for it once you complete your rehab. It will also help you understand how much you need to borrow and if hard money loans are the financing tool you need.
Every investor looking for a hard money loan in the DC area needs the help of a good real estate agent as well. How to differentiate good real estate agents from mediocre ones? In this blog we discuss top five things to do when looking for a right agent for your next real estate investment opportunity.
Maryland real estate offers a unique opportunity to build wealth. As a lender writing hard money loans in Maryland for over ten years we see four top reasons to invest here: income stability, diverse price range, continuing price appreciation and rental opportunities in certain neighborhoods.
Hard money programs differ dramatically from traditional mortgage programs. Traditional mortgage financing comes in different forms and shape, each with stringent underwriting criteria. The strength of hard money is in its flexibility. The singular question that our hard money underwriters are trained to answer is: What is the likelihood of timely repayment of this loan?
Finding a good real estate investment takes a lot of work and a lot of patience. When working with a hard money lender, make sure you have chosen an investment that is going to give you enough return to make it worthwhile. To find those kinds of deals, you are going to have to do your homework first. Waiting for the best deals to come to you by word of mouth or social media isn’t the way to go.