Silver Spring is a famous D.C. suburb and one of the most famous suburbs in the D.C., Maryland, and Virginia (DMV) area. As a suburb, it is a Metro stop away from Washington D.C., but still has all the advantages of being in Maryland. Silver Spring is widely considered one of the best places to live in Maryland, and it is known for terrific schools and a terrific hub for young professionals.
Silver Spring is a seller’s market, which means demand for housing is outpacing supply. It is a place where real estate investing is very competitive, where real estate investors have to put down money very fast to be able to buy properties.
To get that fast, hard money, hard money loans might be the answer. Hard money loans are also known as bridge loans or last resort loans, and they are used primarily for fix and flips, long-term rentals, and repairs for a variety of distressed properties.
Hard money loans can be approved very quickly, within only a couple of days. They can be approved so quickly because they’re based on the property, not the credit of the borrower. In particular, this gives them a significant advantage over mortgages from banks, which can take a month or more to be approved. This does not mean credit does not matter, since many hard money lenders still require a minimum credit score of 600 to 620. However, it does mean hard money lenders use the property as collateral and collect the property in case borrowers default on the loan.
This means hard money loans comes with significant risks, for both the borrower and the lender. They come with high-interest rates of 8–15%, low LTV ratios, and short repayment periods. If the real estate investment does not generate a significant profit, these hard money loans can be hard to pay off. They also require bigger down payments than traditional loans and need to be paid off quickly.
It’s also important to be selective with hard money lenders. Not every hard money lender is trustworthy. New investors have to be careful since only some hard money lenders lend to new investors to begin with since new investors don’t have the proven experience of successful investments. Some lenders may tack on extra fees like origination fees or closing costs, and although every lender has fees, it’s essential to get the best rates and the. most honest lender possible.
At Hard Money Lenders IO, we have compiled a list of the best hard money lenders for real estate investors in Silver Spring. These lenders will give you the best rates possible and partner with you to finance the deal you want for the area.