As a hard money lender, I want you to be aware of a disturbing trend that I’ve seen with many of our own properties. This trend is for buyers to pick your property apart and use the home inspection to renegotiate the price. You need to be aware – and be weary – of buyers who are fishing for a bargain and not emotionally vested in the transaction. They use the home inspection as a tool to renegotiate the price you’ve already agreed on. They demand more and more, and are ready to walk away from the contract if you don’t agree to meet their demands. As a hard money lender, I have several suggestions on how to handle such situations.
real estate prices
In our previous blogs we’ve talked about the art of pricing your newly renovated rehab property. To summarize it’s all about finding the balance between setting the highest price and not letting your property linger on the market. Let’s assume you’ve carefully done your homework and – voila! You now have an offer or two to ponder. It’s an exciting news, but as a grizzled hard money lender and a real estate investor, I have some words of caution. If you give in to wishful thinking and let your guard down at this stage, you can jeopardize the timely sale of your property. You might also lower its value in the eyes of potential buyers and kiss your best price good-bye. Do NOT get euphoric. Proceed with caution.
As a hard money lender, I have deep respect for the hard work and hundreds of hours our borrowers put into each of their rehabs. Some of that work is exhilarating – think about getting that contract signed, especially when the price is right! Some of it is tedious – pushing through the county bureaucracy and dealing with inspectors. Some of it is downright maddening like when your contractor is dragging his feet or slams you with a change order. When all this hard work is done and your property is about to go on a market, we know you feel like breathing a sigh of relief. But wait. You’re now facing your final challenge – pricing your property right.
What separates newbies from weathered rehabbers? What are the key differences between investors who can consistently turn solid profits by flipping homes and someone who is chasing a dream, even if it’s a pipe dream? As a hard money lender, I have some telltale signs of a real estate investor who is still has some maturing to do.
Summer is the most active real estate season and the time when real estate prices peak. It can literally make or break the entire year. This summer was strong in the DC area. Prices remained stable and in some areas increased. What does it mean for real estate investors like you and I? Perhaps most importantly, how can we capitalize on those trends and make money by using hard money loans in Maryland?