Gaithersburg is another suburb in the Washington D.C. area, much like Bethesda and Rockville. As a famous Montgomery County suburb, Gaithersburg is the ninth biggest city within the state of Maryland. It’s also a very diverse suburb. Gaithersburg is extremely difficult to start investing in because of its status as a highly sought-after suburb.
Gaithersburg used to have a reputation as an affordable suburb, but now it is considered one of the best places to live in Maryland and a hub for many young professionals and new parents. With over 60,000 people and very good public schools, Gaithersburg is slightly more affordable than Rockville, and has an even mix between people who want to rent and people who want to buy.
As of January 2022, Gaithersburg is a seller’s market. It is a city where demand outpaces supply, and as such, it is a very competitive suburb where hard money loans might be the answer.
Hard money loans are also known as last resort loans, and they have that reputation because of their significant drawbacks. Hard money loans can have low LTV ratios, high interest rates, and short repayment periods. Anyone who gets a hard money loan may have trouble paying it off unless a real estate investment pays off. They will also have to have enough hard cash on hand to pay a bigger down payment.
However, hard money loans have one fundamental advantage over traditional loans: they have short approval periods. Compared to traditional mortgage loans from the bank, hard money loans can be approved very quickly. In fact, hard money loans can be approved within a couple of days, which is especially important in a competitive and cutthroat real estate market.
These loans can be approved so quickly due to being based on the property, its location, and value compared to traditional loans. Hard money loans don’t depend on a borrower’s credit, which can be a barrier to many real estate investors. It’s not like credit does not matter — most hard money lenders require minimum credit scores of 600 to 620. But hard money lenders use the property as collateral for a loan, which means hard money lenders take on the property if borrowers default on loans.
But not every hard money lender is trustworthy, since some try to tack on extra fees, particularly for new investors. It’s important to be especially selective as a new investor because most hard money lenders won’t lend to someone without a track record of successful investments.
Here at Hard Money Lenders IO, we have compiled a list of the best hard money lenders in Gaithersburg. In a competitive market, we have you covered in finding a financing partner for your ideal property.
