Baltimore is the biggest city in Maryland and has a thriving real estate market. Many neighborhoods in Baltimore are selling rapidly and on the market for very few days, including Hampden, Locust Point, and Federal Hill. It is the epicenter of Maryland, known for its huge biomedical employer in Johns Hopkins University and a place where proximity to Washington D.C. has led to significant growth in real estate.
Although the city’s population has been declining in recent years, and the city has a poor reputation in much of the media, the average annual salary of the city is still higher than the national average and the median household income is high compared to the rest of the country. The life sciences, IT, healthcare, and manufacturing are still rapidly growing employers within the region. Originally a working-class industrial town, Baltimore has changed significantly since its origins. It is a growing hub for immigrants and young professionals.
To invest in real estate in Baltimore, an investor may benefit from hard money loans. Hard money loans are known as bridge loans or last resort loans, but Baltimore is a very strong renters’ market where homes sell incredibly quickly. As such, the biggest advantage of hard money loans in fast, hard cash is integral in the Baltimore market.
Hard money loans have fast approval speeds given the fact they’re less regulated than traditional loans. Hard money loans can be approved in a couple of days, while traditional mortgage loans from banks often require a month at least to get approved. This speed of approval is integral to competitive markets like Baltimore.
These loans have high interest rates, short repayment periods, and low LTV ratios. They can be advantageous but have plenty of advantages as well. They may require larger down payments than traditional loans, and the hard money lender uses the property as collateral rather than the borrower’s credit. If the borrower defaults on the loan, the borrower collects the property, which means hard money lenders often look for whether the property can pay off the hard money loan.
They are often used to fund fix and flip projects, construction projects, distressed home repairs, and long-term rentals. In Baltimore, using hard money loans to fund long-term rentals can be very profitable, especially for distressed and foreclosed properties in gentrifying areas.
But not every hard money lender can be trusted. Some tack on extraneous fees like origination fees and closing costs, and new investors, in particular, can be vulnerable to untrustworthy lenders because many hard money lenders require a successful track record of successful investments.
At Hard Money Lenders IO, we have you covered. These are some of the best hard money lenders in Baltimore that you can trust to secure the property of your dreams.