Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
Picture your settlement sheet like a receipt from a very expensive restaurant. You knew dinner wouldn’t be cheap… but then come the line items you didn’t quite anticipate.
This guide is designed for real estate investors in Maryland, Washington, DC, and Virginia who want to avoid last-minute surprises at closing. It also doubles as a resource you can revisit (or share with your partners) before you sign.
Below are the most common “surprise” charges we get calls about at New Funding Resources.
Investors who purchase and renovate distressed properties in Maryland, Virginia, and Washington, DC must approach each opportunity with caution. In our local market, a home with foundation problems can quickly turn from a promising investment into a financial drain.
Doors that stick, uneven floors, or visible cracks in the walls may all signal foundation issues. While some of these problems are minor, others can cost tens of thousands of dollars to repair—significantly reducing your ROI.
Although you may be a jack-of-all-trades, sometimes it’s more efficient to hire a general contractor. Working with general contractors saves you time and headaches, especially if your project involves getting permits. The right contractor and crew – the ones with a proven track record – are essential in maintaining the profitability of your fix-and-flips. However, mismanaging or mistreating them or even having poor communication between the parties involved can drain your profits and, in some cases, delay the resale of the property. Yes, we are talking about the dreaded mechanic’s liens – the nuclear option a frustrated contractor or subcontractor can use to address the payment dispute.
Fixing and flipping real estate—buying properties, renovating them, and selling them for a profit—can be highly profitable if done right. However, it also carries significant risks if not managed properly. As a hard money lender, we see some of our borrowers building thriving businesses and others giving up after their first transaction.
Trust me, the luck of the draw has little to do with it. What sets a successful real estate investor apart is their discipline in following the best strategies for a successful fix-and-flip investment. The good news is that you don’t have to reinvent the wheel or learn by trial and error. We’ve put together a detailed list of these best practices that is thoroughly reality-based. I can attest that ignoring each item on this list can drain your project’s profits. In contrast, paying careful attention to each bullet point will increase your profits and minimize your risk.
When we evaluate a transaction, we look at several numbers. Each is equally important, and together, they determine how much profit our borrower will make. The first two numbers are the property prices: the price you are paying to purchase it in its current as-is condition and the price you are hoping to sell it for after your renovations are completed. These numbers are like the bookends supporting your entire project. The sturdier they are, the less likely the project will collapse. But what’s in between them is also important: your renovation costs. Estimating renovation costs accurately is crucial to achieving your desired return on investment. Unless you have vast construction experience, it’s not easy. However, if you have discipline and attention to detail, you can learn to make pretty good estimates by following the footprint below.
Tracking expenses is a fundamental aspect of effective project management in real estate renovation. It helps you maintain financial control, make informed decisions, and ensure the success and profitability of your investment. In this article, we talk about many benefits of efficient cost tracking and share very practical tips on how to do it without overwhelming yourself.
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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 