Bowie is the famous home to Bowie State University, a popular HBCU in Prince George’s County, Maryland. Growing from a railroad stop, it is now the fifth biggest city in Maryland and the biggest city in Prince George’s County. In 2014, CNN Money put Bowie as 28th in the best places to live in the country.
Bowie has a suburban feel, and 83% of adults in Bowie own their homes. It is a very diverse area to live and is widely considered one of the best places to live in Maryland. In January 2022, Bowie had an average listing age of 41 days, which means it has a very competitive real estate market and homes sell very fast within the state.
To invest in real estate in Bowie, hard money loans might be the answer. Hard money loans are mostly used to fund distressed properties, fix and flips, long-term rentals, and construction projects. They are based on the value of the property, not the credit history of the borrower. Bowie is a competitive market, so hard money loans are especially advantageous because a real estate investor can get fast, hard cash to gain leverage over other buyers and investors.
Because hard money loans don’t depend on credit, they can be approved very quickly. A hard money loan can be approved within a couple of days, as opposed to a traditional loan, which takes at least a month at times to be approved by the bank. If a borrower defaults on a mortgage, a bank undergoes foreclosure proceedings. However, if a borrower defaults on a hard money loan, the lender collects the property. And the lender needs to make sure the property can pay off the loan by itself.
Hard money loans have a lot of risks as a result. Some of those risks include lower LTV ratios, shorter repayment periods, and higher interest rates than traditional loans. Hard money loans need to be paid off quickly and are more expensive as a result.
Time is often money in real estate investing. Hard money lenders guarantee speed and flexibility traditional lenders do not.
However, it is important to be selective about the hard money lender you choose. Many hard money lenders may seek to take advantage of new investors in particular with extra origination fees or closing costs. Other hard money lenders might not be transparent about other costs as part of the transaction. New investors in particular are vulnerable to scams because many hard money lenders require a minimum number of successful real estate transactions.
We at Hard Money Lenders IO have done the hard work so you don’t have to. We have researched the best hard money lenders in Bowie to help you secure the best deal possible.
