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

Our Buy & Hold Loans Set Local Landlords for Years of Profitability

There are different ways to make money in real estate. It’s a misconception to think about hard money loans as financing exclusively for fix and flips. As the market changes, we see more emerging opportunities for real estate investors with longer investment horizons. Those investors are looking to build long-term wealth by retaining their newly renovated properties instead of 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 reslient real estate portfolio.

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

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, 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 rehab a property, you need to look for creative ways to secure that deal. Our private hard money 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 Held Develop Appropriate Scope of Work for Your Buy & Hold Transaction

A property you are planning to keep as a rental might require a different type of renovation than a house meant for a flip. You might skip on those top-of-the-line fixtures and choose its flooring for its stain-resistance and not flair. 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 Make Sure Your Refinance Strategy Is Solid & Keeps the Costs of Your Rental Property Low for Years to Come

Our hard money loans are an effective tool to acquire and rehab your future rental property. They assume a risk of loaning 100 percent or more on a distressed property’s current value and provide real estate investors with incredible leverage. However, they are not set up to hold in the long term. Once your rehab is complete, you will be better of refinancing our hard money loan with a traditional lender. Your situation now is entirely different: instead of property in need of repairs, you now have a beautiful home with quite a bit of equity in it. Unless you have issues verifying your income or have low credit scores, refinancing to a low-interest, long-term loan should be a breeze. Our underwriters will work with your early on to ensure that you have all your ducks in a row. And did we mention that our loans have no pre-payment penalty? That means that you are free to refinance as soon as your repairs are complete.