Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
Finishing a basement presents a unique opportunity to increase the after-repair value of your rehab. On the other hand, it might plague you with problems and be a bottomless drain of time and resources. If you are a real estate investor looking for the most efficient ways to improve the ROI of your rehab, decisions about the basement should be on top of your mind. Let’s dig deeper (no pun intended) to explore how to handle basement renovation decisions to make your money and minimize your risk.
One of the consistently trending online searches is how to get into real estate investing with no money and poor credit. A great number of sites and videos are dedicated to this topic. What they peddle most is an encouragement and “can-do attitude” that has little to do with reality. It makes me wonder if those so-called experts have even a slight understanding of how the real estate investing or lending industries work. So if you want to be told that having poor credit and no dime to your name makes you a great candidate for real estate investing, stop reading right now. Find an alternative source of information that would cuddle you into wasting your time and energy with false promises. My goal is different and this article is for those who both can handle the truth and are prepared to work on the long-term plan.
If you are a fan of TV home flipping shows, you might be under impression that fixing-and-flipping homes is a glamourous job with guaranteed profits at the end. You stroll in, ponder the design, and voila! In a short time, the old shack is transferred into a fashionable abode making loads of money for you and thrilling potential buyers.
Things are much more complicated in the real world. A flair for design is a plus, but the first thing you need to be is a humble accountant. No amount of creativity will save your project if it’s missing fundamentals to make you money. The real estate investing industry is afloat in tools, formulas, and calculators to make it easy to evaluate the transactions. Let’s take a quick look at their ins and outs.
For those new to hard money lending, using private funds for the first time might be intimidating. Direct hard money lenders work differently from traditional banks. However, few new borrowers understand these differences. Like everything else in life, hard money lending has its pros and cons. Hard money loans are not for everyone and not everyone would qualify for them. However, working with a direct hard money lender vs. a traditional bank could offer flexibility and leverage not available anywhere else. Think about hard money lenders as a narrow subset of mortgage companies that provide a unique type of financing to borrowers in very specific circumstances.
Private lenders (alternatively referred to hard money lenders) are a narrow subset of mortgage companies that specialize in working with real estate investors. The financing that they offer is asset-based. As the name suggests, asset-based financing is financing that is secured against an asset or collateral. Asset-based financing has a long history that goes back to ancient times when almost anything of value could serve as collateral. In modern times, the most common assets for businesses to borrow against are accounts receivable financing, inventory financing, equipment financing, or real estate financing. Our focus is asset-based lending for real estate investors.
Much of the advice on private money loans are focused on how to get qualified for them. While it’s certainly an essential topic, an equally important subject is how to ensure your success once you obtained that funding. So, how to work with private lenders to ensure your success? Let’s face it – your ultimate goal as an investor is to maximize your profits. Repaying your private money loan as quickly as possible is a necessary milestone in meeting such a goal. By moving through your rehab efficiently, you can save thousands of dollars. In contrast, every additional month your loan is outstanding will cost you a pretty penny in carrying costs such as interest payments, taxes, and insurance. If you fail to repay a loan within a term agreed (typically twelve months), you might also incur default fees and interest. All of them would take an additional chunk out of your profits.
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New Funding Resources, LLC
806 West Diamond Ave.
Suite 340
Gaithersburg, Maryland 20878
Phone: 240-436-2340
All loans subject to our review of underwriting criteria and conditions. We reserve the right to approve or deny any loan application based on our sole discretion.
New Funding Resources 