Wheaton is a city north of Washington D.C., and it is a city in the Silver Spring area of Montgomery County. Wheaton is considered a suburb of Washington D.C. with a population of just over 50,000 people, and most residents in the city own their homes. Like North Bethesda and other D.C. suburbs, Wheaton is a predominantly liberal hub for young professionals.
It is a school district with above average schools where 65% of adults own their homes and 35% of adults rent homes. It is one of the most diverse areas to live in Maryland, earning an A+ in Niche for diversity. Wheaton is named after a general in the Union side of the Civil War, Frank Wheaton, and many people who live in Wheaton may commute to and from Washington D.C. or elsewhere in Montgomery County.
Hard money loans might be the best way to invest in real estate in Wheaton. Wheaton is a seller’s market, which means there’s more demand for real estate than supply. This means Wheaton is a competitive real estate market where investors need money very quickly to make a competitive offer.
Hard money loans are mostly used for fix and flips, long-term rentals and the construction of distressed properties. The biggest advantage of hard money loans is they can be approved quickly, and a fast speed of approval is especially advantageous in competitive real estate markets.
Compared to traditional loans from the bank, which take a month at times to be approved, hard money loans do not rely on the credit history of the borrower. Instead, they rely on the projected value of the property after repairs. This means hard money loans are used primarily for real estate transactions since they have high interest rates, low LTV ratios, and short repayment periods.
Since they need to be paid off so quickly, they carry significant risk for both the borrower and the lender. If the borrower defaults on a hard money loan, it’s not like defaulting on a mortgage. Instead, defaulting on a hard money loan means the hard money lender takes on the property, and from the lender’s perspective, the property must be able to pay off the loan.
Hard money loans will have average interest rates of 8–15%, but some will also charge extra fees. The best hard money lenders will be transparent about underwriting fees and disclose all fees, but others will tack on extra fees or not communicate well with the borrower.
It’s important to find a hard money lender that will provide you with the best rates possible, a hard money lender you can trust. We have compiled a list of the best hard money lenders in Wheaton at Hard Money Lenders IO. These are the most reputable and reliable hard money lenders for the area.