New Funding Resources 
Looking for Private Money Loans in Maryland, DC, and VA?
What are private money loans?
Private money loans are loans issued by private firms to finance the acquisition and rehab of real estate. They are alternatively referred to as hard money loans or private loans. Private money loans are a type of asset-based lending where residential or commercial real estate serves as collateral. Private money loans are business loans. They are issued to real estate investors for business purposes. The primary purpose is to generate profit by acquiring and renovating distressed properties. In rarer cases, they can be used to finance another business purpose. To do so, a borrower needs to already own an investment property with substantial equity in it.
What makes our private money loans different?
Their unique personality. We are serious. This is why they are called “private”. Our loans are made by a private lender, New Funding Resources, that is not beholden to any underwriting criteria besides its own. Those underwriting criteria are based on years of experience in both lending AND investing in the Greater Washington, DC area.
We are not an out-of-state lender unfamiliar with the local market. We live, work, invest, and manage a robust portfolio of properties in Maryland, Virginia, and Washington, DC. Over the years, we’ve seen what works and what doesn’t. We use this knowledge to decide which loans are good risks and which are not. Perhaps more importantly, we use this local expertise to guide our borrowers through the process and help them maximize their profits. Our lending experience consistently demonstrates that when our borrowers are making money, our loans are both safe and profitable. This is why the underwriting and servicing of our private money loans are focused on increasing your deal’s profitability.
Ready to roll? Let’s start with a conversation. You can call us at 240-436-2340 or fill out our application form here. We’re excited to be working with you.
What is required to get pre-approved for our private money loans?
Enthusiasm for real estate, some nest egg, desire to make money, and the ability to work hard. Common sense is a big plus. We often say that if a deal makes sense, we’ll find a way to fund it. The amount you are pre-approved for depends on the amount of your own capital you are willing to commit to real estate investing and your real estate investor profile. The more experience you have, the less risk you represent to the lender and the more complex projects you can handle. You are not required to have a specific property in mind to get pre-qualified for financing with us.
Once you find an investment property within your price range and put it under contract, we will work with that specific scenario to determine our loan amount and your personal contribution to the transaction. The more profitable the transaction, the more leverage we can provide. For example, we can finance as much as 90% of your purchase price and your renovation budget combined.
What is not required for our private money loans?
No Experience. Though working with an experienced real estate investor lowers lender’s risk, we do not require it. We have a successful track record identifying new real estate investors poised for success and supporting them along the way.
No Income Verification. We are truly a no-doc lender. We will not be verifying your income or asking you to fill out any income-supporting forms, including form 4506.
No Minimum Credit Score: Unlike many lenders, we don’t have a minimum credit score requirement and work with all types of credit. We look at each transaction holistically and try to identify its potential strengths and weaknesses.
What kind of transactions can our private money loans fund?
We fund any types of transactions except for the owner-occupied homes. Our bread and butter are residential investment properties (single-family detached homes, townhouses, or condos), but we also finance multi-family, commercial, and mixed-use properties. You can use our private money loans to buy and rehab a home you intend to flip and a home you plan to rent out. We are also one of the few lenders who fund non-recourse loans. Non-recourse loans are loans made with your self-directed retirement funds. And remember… we are super local. We only do business in Virginia, Maryland, and Washington, DC.
What kind of transactions are ineligble for private money financing?
You cannot use private money loans to purchase or to borrow against a primary residence. Also, private money loans are expensive and, for this reason, not designed to be held for more than twelve or eighteen months. While technically a private lender can accept any collateral they deem worthy, private money loans are most commonly secured by real estate. So in the sense, private lenders are a subset of mortgage companies.
The most common misconception about private loans is to confuse them with subprime financing. They are not created to enable homeownership for folks with financial challenges. Quite the opposite: they are designed to offer a unique investment opportunity to businesses and indviduals that already have some capital to invest.
How fast can we close your private money loan?
Our usual closing time is between three and ten days. As soon as we have your clear title, your appraisal, and the right type of insurance, we can go to closing. The process is as simple as if you were paying cash for the property. This is why the offers made with our private money loans are considered cash offers. If you need an immediate closing, please contact us directly.
Looking for the best private money loans near you? They are just a phone call away, at 301-812-3257.
