Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
If you’re ready to rehab homes for profit in 2020, there is definitely good news. 2019 was an active and profitable year for our borrowers. As we sail into the new year, the fundamentals for another successful year in real estate remain unchanged. As we discussed in our previous blog, we’re fortunate to be living and investing in one of the most stable real estate markets in the nation.
In our previous blog, we’ve learned about the intricacies of private money loan serving and why private lenders consider it a good practice to establish a construction escrow account. Clear communication between a borrower and a private lender is essential for a smooth servicing of your loan and uninterrupted flow of your renovation funds. Here are three important things that you can do to ensure the success of your private loan after closing.
The efficient management of construction escrow is an integral part of a hard money loan transaction. The choice of your lender makes a huge difference in how smooth the process is. Many borrowers who are new to private financing tend to focus on what happens before a loan closes and ignore an integral part of hard money financing – loan servicing.
In the previous article, we talked in detail about the tell-tale signs of hard money scams. They might range from advertising unusually low rates to purposefully obscuring the lender’s cost structure. However, what’s more important is to understand how to avoid hard money scams by selecting a reputable private lender, and this is what we would focus on today.
Financial scams are life’s unfortunate reality, and hard money scams are no exception. As the hard money industry matures, the number of entities that engage in questionable ways of doing business goes up. Unscrupulous practices might range from false advertising and interest-rate bait-n-switch to collecting substantial upfront fees and then refusing to fund a loan.
In our previous blog, we’ve addressed one of the most frequently asked questions: Is a hard money loan considered cash? Now that we’ve covered when a hard money loan is equivalent to cash and why, it’s time to discuss their differences. In other words, should you pay cash for an investment property or should you borrow money instead? To come up with a strategy that is right for you, let’s discuss the advantages and disadvantages of each way.
Recently I spoke to a brand-new investor who asked us to look at a loan scenario for him. A deal he wanted to discuss was not particularly strong. In fact, my numbers showed him making just over $6,000 in profit. After we talked more, he confessed he was thinking about purchasing the property all-cash, to “test the waters” and “eliminate additional expenses.” Were he to bypass a lender and pay his way with his own cash, his profits would increase substantially.
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 