Private Buy & Hold Loans in Maryland, Washington, DC & Virginia

Our Buy & Hold loans set local landlords for years of profitability.

There are various ways to make money in real estate. It’s a misconception to think of hard money loans as financing exclusively for fix-and-flips. As the market evolves, we are seeing more emerging opportunities for real estate investors with longer investment horizons. Those investors are building long-term wealth by retaining their newly renovated properties rather than selling them. Whether you refer to such transactions as fix-and-hold, rehab-and-hold, fix-and-rent, or BRRR, our private hard money financing can help you build a robust and resilient real estate portfolio.

Buy-and-hold loans offered by private lenders should not be confused with DSCR loans. Although both types of loans are used to finance rental properties, private lenders offer short-term, asset-based loans for quick acquisitions and renovations of distressed homes. DSCR loans, on the other hand, are specifically designed for financing long-term rental properties. Instead of relying on personal income, DSCR lenders evaluate whether the property’s rental income can cover the debt payments (DSCR ratio). These loans generally offer lower interest rates and longer termsa , but do not finance unoccupied properties in need of substantial improvements and take long time to close.

What are the advantages of “buying and holding” real estate in Maryland, Washington, DC and Virginia?

Becoming a landlord in the Washington, D.C., area offers several financial advantages, including a strong rental market and various tax benefits. As of February 2025, the average rent for all property types in Washington, D.C., is $2,408, which is 20% higher than the national average. This robust rental demand is driven by the city’s thriving job market and transient population, resulting in lower vacancy rates and consistent rental income for property owners.

Over the long term, the DMV real estate has generally seen steady appreciation. For example, from the 1970s through the early 2000s home prices in Maryland typically increased at an average annual rate of about 3-4%. Though the area was not fully immune to the financial crisis of 2008, the impact was less severe compared to many other regions. Home values did decline, but the region’s strong job market and government presence provided insulation. The market began to recover quickly.

Even during Covid-19 shut-down, the local market was able to adapt quickly. Low inventory, high demand, and historically low interest rates have driven significant appreciation in recent years. Some areas in and around Washington, D.C. have seen annual appreciation rates of 5-10% or more during this period.

If you are a landlord owning rental properties in the Washington, DC, Maryland and Virginia, you are like to benefit from:

Long-term Appreciation: Real estate tends to appreciate over time, allowing investors to build wealth as property values increase.
Tax Benefits: There are various tax advantages, including deductions for mortgage interest, property taxes, repairs and depreciation, which can reduce taxable income.
Hedge Against Inflation: Real estate often appreciates at a rate that outpaces inflation, helping to preserve and increase the purchasing power of invested capital.
Equity Buildup: As tenants pay down the mortgage, the investor’s equity in the property increases, enhancing their net worth.
Portfolio Diversification: Real estate provides diversification for an investment portfolio, reducing overall risk by spreading investments across different asset classes.
Passive Income: Once the mortgage is paid off, investors can generate a steady stream of passive income, providing financial stability and potential retirement income.

How our Buy-and-Hold loans work:

Our Buy & Hold loans help you acquire your future rental property.

Few banks and traditional lenders lend on properties that are distressed. This is why many dilapidated homes are listed with a disclosure that they are sold as-is and cash offers only. Unless you have enough funds to purchase and renovate a property on your own, you need to look for creative ways to finance that deal. Our buy-and-hold loans are considered equivalent to cash and are based on the after-repair value (ARV) of your property. They allow you to effectively compete with all-cash buyers, often cover 100 percent of your purchase price and might also significantly contribute to your renovation budget. To make a long story short, our financing helps you make a winning offer on that promising buy-and-hold investment opportunity.

To learn more or to find out if you qualify for a buy-and-hold loan in Maryland, Washington, DC, or Virginia, apply via the button below or over the phone at 240-436-2340.

Our underwriters will help develop appropriate scope of work for your Buy & Hold transaction.

A property you plan to keep as a rental may require a different type of renovation than a house intended for a flip. You might skip the top-of-the-line fixtures and opt for flooring based on its stain resistance rather than its style. You might shift your rehab’s focus from visual appeal to a prospective buyer to durability and low maintenance. Our experienced underwriters will guide you through your renovation process to ensure it’s completed on time, within your budget , and with an eye to minimizing your future expenses as a landlord.

We ensure your refinance strategy is solid and keeps the costs of your rental property low for years to come.

Our buy-and-hold loans are an effective tool for acquiring and renovating a future rental property. They often assume a risk of loaning 100 percent or more on its current value, providing real estate investors with incredible leverage. However, they are not set up to be held in the long term. Once your renovation is complete, you will be better off refinancing into a loan with a lower interest rate offered by conventional lenders. Those lenders might have had little interest in financing a distressed home, but once it is renovated, they are ready to lap it up!

Conventional lenders underwrite their loans differently than private lenders. A private lender may not consider your credit score or income, but conventional lenders do. That means that if you plan to keep the property as a rental, you must be able to qualify for much stricter conventional underwriting standards. Our underwriters will work with you early on to ensure that you have all your ducks in a row early in the process. We call having a solid exit strategy.