Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
The Holiday season is upon us. Things traditionally slow down, priorities shift, and with the barrage of family responsibilities, it’s challenging to make time for real estate investing. Or so the conventional wisdom goes. In reality, it’s a unique opportunity to snatch a deal – while your competition is busy roasting chestnuts and sipping the eggnog.
The main difference between private and traditional lending is that private lenders base their loans on the after-repair value of the property. In contrast, conventional lenders base it on the current market value. Both the after-repair value and the current market value is ultimately determined by a licensed appraiser. However, the after-repair value is the value that is not there at the time of the appraisal. It’s simply a projection of what the property might be worth once the planned renovations are completed. It’s based on the sale prices of similar properties rehabbed to the same extend our investor plans to rehab hers.
The underwriting speed is one of the main differentiators between hard money loans offered by private lenders and conventional loans offered by traditional mortgage companies. “How long does it take to close?” is often the first question prospective borrowers ask. In many cases, this is a rhetorical question: if a new investor knows anything about private lending, it’s that it’s faster than other types of financing. Private lending does not provide consumer financing and is not subject to extensive regulations and requirements. Hard money financing is heavily focused on the property itself and its ability to both make money for the investor and serve as sound collateral for the lender. When working with investors, the cornerstones of conventional underwriting, such as credit scores or the ability to make payments in the long-term, might be less important.
The “Covid-19” real estate performance numbers are officially in and guess what? It had another record-breaking summer. In July, the median home sales price hit a ten-year high, posting a 13% increase from last year.
What does it mean for you? It means that if you bought a property for $200K in summer 2019, by now you would have been at least $26K richer. Just think of it – you would have earned $26K by doing virtually nothing.
Real estate investing is a fantastic way to make money. Whether you are looking to book your profits as soon as possible (fix-and-flip) or are building long-term wealth (buy-and-hold), there are strategies that fit many budgets and investor profiles. However, “many” doesn’t mean all. Not everyone is in a position to take on the risk associated with real estate investing. Not everyone can afford it, and not everyone succeeds. Doing something for the first time in your life is risky; being a first-time real estate investor is no different.
The right hard money lender is an essential part of your success as a real estate investor. This is why you might not want to rush in doing business with the first lender who pre-approves you or promises the lowest rates. Make sure you understand what the right lender means for you and what your personal expectations of a successful partnership are. To help you do it, we put together eleven awesome tips on how to choose a hard money lender that is right for your level of experience, financial strength, and entrepreneurial style.
Home
What We Do
Who We Are
Hard Money Lenders
Private Mortgage Lending
Private Money Lender
Our Loan Programs
Our Process
Tools & Resources
Get Approved
Mortgage Brokers
Real Estate Agents
Capital Investors
Funded Loans
Contact Us
Sitemap
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 