Rockville is a city in Montgomery County. It is a suburb where there are a lot of young professionals, and it is also a place with stellar public schools. With Gaithersburg and Bethesda, Rockville is home to many software and biotechnology companies. It is also a place where there are many federal government institutions and people who commute to and from Washington D.C. every day.
Rockville is widely considered a terrific place to live, and the quality of life in Rockville’s homes, as well as Rockville’s high demand among first-time homebuyers, are accelerating the real estate market within the suburb. It’s also a great transportation hub due to the Shady Grove Metro Station within the city, which also gives Rockville very access to Washington DC.
Right now, Rockville is a seller’s market, which means there’s more demand for homes than there is supply. In the last three years, the average time a home was on market was 63 days.
Hard money loans are also known as bridge loans or last resort loans. They are advantageous in real estate transactions because they can give very fast, hard cash. Hard money loans help buyers be competitive in a real estate market like Rockville. They are used in house flipping, repairs for distressed and foreclosed properties, and long-term rentals. In Rockville, 45% of adults rent homes, which means Rockville has a robust rental market.
Hard money loans are also based on the value of the property, not the credit of the borrower. The credit score of the borrower does matter — many hard money lenders require minimum credit scores of 600 to 620. The hard money lender often takes the home as collateral, and if a borrower defaults on the loan, the hard money lender takes the property. This means the lender needs to determine whether a hard money loan can be paid off by the property itself. Another major difference is hard money loans do not require a lengthy foreclosure process like a regular bank.
These loans are risky for both the lender and the borrower, which results in higher interest rates, lower LTV ratios, and shorter repayment periods. As a result, hard money loans can be very hard to pay off if an investment does not pan out. It’s important to be especially selective as a hard money lender as a result. Some hard money lenders can tack on etra fees like origination fees and closing costs, and some can not communicate well wth borrowers. That’s why it’s important to do your research and find the best possible partner for your real estate investment.
At Hard Money Lenders IO, we can help you find the investment property of your dreams in Rockville.