Today I want to talk in more detail about how to form an LLC in Maryland. As a hard money lender in MD I cannot emphasize enough the importance of protecting your profits and assets by not doing business in your personal name. You can read about all detailed reasons in our previous blog “Hard Money Lenders Love LLCs. Here is Why You Should Too,” but here is a quick summary.
Hard Money Lenders
Recently we’ve been getting many phone calls from rehabbers looking for an alternative to their current hard money lender. Curiously, the reason for wanting to switch is almost always the same. These borrowers are tired of dealing with an out-of-state company and want to work with someone local.
One of the questions we get a lot, especially from new real estate investors is, “How do I deal with risk?” I wish investing was a sure thing, but there really is no such thing as a “sure thing.” There is always the possibility of losing money just like there is always a possibility of making money. It’s all about dealing with risk. But you can help minimize that risk by using experienced hard money lenders. Here are some other tips for handling risk in your investments.
As hard money lenders, we cannot overemphasize the importance of finding the right contractor. A reliable contractor can significantly improve your return on investment. In contrast, an incompetent contractor can flush your profits down the drain. If you are a first time investor, finding a reliable contractor should be your priority.
Are you considering working with a hard money lender for the first time? If so, you probably have many questions about who hard money lenders are, how they work and how different they are from traditional lenders such as banks and credit unions. Hard money loans are not for everyone and not everyone will qualify for them. However, for many investors they offer a fast and nimble source of capital not available from other sources. In this article we discuss key difference between traditional lenders and hard money lenders and why, without hard money lenders, real estate investing would be limited to those with very deep pockets.
Rehabbing properties in the Greater Washington DC area can be very rewarding both financially and emotionally. However, you have to take an active part in the process. This means picking the right contractor and making sure they get the job done right and on time. As hard money lenders we’ve seen great investment opportunities turn into a financial disaster because of borrower’s inexperience in managing contractors. In this blog, we share five great tips on how find a right contractor and manage your rehab to maximize your profits.