Dundalk is a suburb in Baltimore County right outside Baltimore City. It has a population of over 65,000, and Dundalk is one of the inner-ring of suburbs in Baltimore. It has a suburban feel and there are many bars, restaurants, and coffee shops in the suburb. The majority of people own their homes in Dundalk, and Dundalk is also a very affordable suburb right outside Baltimore City.
Currently, the median home value in Dundalk is $149,800, and the median rent is $1,141. It has a median household income of $55,757, and the city has a reputation as a working-class and blue-collar community right outside Baltimore City.
According to Realtor, Dundalk is currently a seller’s market. This means demand is outpacing supply in the real estate investment market in Dundalk. In the last three years, homes have been on the market for 56 days.
Hard money loans might be the best way to invest in real estate in a market as competitive as Dundalk. Mostly, these loans are known as bridge loans or last resort loans, but they can be used to fund fix and flips, long-term rentals, construction projects, and repairs for distressed properties.
Hard money loans are based on the property and its value rather than the credit of the borrower. These loans still often require minimum credit scores of at least 600. However, hard money lenders use the property as collateral, and the hard money lender takes on a property in case the borrower defaults on a property. The lender has to see whether a hard money loan can be paid off by the property as a result.
Since hard money loans are used mainly for real estate transactions, and because hard money loans are inherently very risky to lenders, they have high interest rates. They also have short repayment periods and low LTV ratios. This means hard money loans need to be paid off quickly and require a greater portion of the house to be paid off in a down payment.
Hard money loans can be hard to pay off without a good strategy, and it’s important to be particularly cautious as a new investor because not every hard money lender is trustworthy. Some do not communicate about extra fees while signing off on a deal, and while every hard money lender has fees like underwriting costs and more, the best hard money lenders are transparent and dependable. New investors get the short end of the stick and may have an entry barrier because most hard money lenders require a track record of successful real estate investments.
We have you covered. At Hard Money Lenders IO, we have made a list of the best hard money lenders for your real estate investment in Dundalk.