Bethesda is a famous D.C. suburb and the home to the National Institutes of Health (NIH) and the Walter Reed National Military Medical Center. Bethesda is the most educated city in America, known for its wealth, medical institutions, and proximity to Washington D.C. Last month, the median listing price for Bethesda was $819,000.
According to Niche, Bethesda has a median household income of $164,142, and 56% of residents in the city have a Master’s degree or higher. It is a city with an urban feel, where 66% of people own homes and 34% of people rent homes.
Right now, Bethesda is a seller’s market, which means demand outpaces supply in the town. In the last three years, the median days on market was 68 days, and Bethesda is also known for having very good schools.
Hard money loans might help you invest in real estate in the very pricey and competitive real estate market. Hard money loans are mostly used for fix and flips, construction projects, and long-term rentals. They are very useful loans that are advantageous because they give fast, hard cash and can be approved within a couple of days. Compared to traditional loans, hard money loans require significantly less documentation.
Most traditional loans from banks need at least a month to be approved, but hard money loans can be approved very quickly because they’re based on the property, not the credit of the borrower.
The credit of the borrower factors in only a little bit for hard money lending — the majority of hard money lenders require minimum credit scores of 600 to 620. However, most hard money lenders use the property as collateral for hard money loans. The property is collected and owned by the lender in case the borrower defaults on a hard money loan, which means hard money lenders in Bethesda have to check whether the property can pay off the hard money loan in case the borrower defaults on the loan.
It’s important to note hard money loans come with significant risks as well. The majority of hard money loans have higher interest rates, lower LTV ratios, and shorter repayment periods than traditional loans from the bank. Borrowers have to put down bigger down payments and pay off the loans sooner than 15 to 30 year mortgages from banks.
Not every hard money lender is trustworthy, because some hard money lenders may try to tack on extra fees like underwriting or origination costs, or not communicate about costs when before signing off on a deal. New investors in particular are susceptible to these costs.
At Hard Money Lenders IO, we have compiled a list of the best hard money lenders in Bethesda. Look no further to find a partner to finance your real estate deal.