Hard Money Lenders in Washington D.C.


If you’re a real estate investor in the D.C. area looking to either renovate a property you want to sell or build a new property altogether, a traditional lender such as a bank or a financial institution may not be the best option for you. Such lenders often require a lot of information and research on your part, and they can be tediously slow. If they approve your loan at all, there’s a chance another investor might get the property you want before you can close. 

That’s why you should look into hard money loans. A hard money loan is an asset-based loan from a private lender, meaning the collateral is actually the property you want to invest in.

What is a Hard Money Loan?
While a traditional lender makes a decision based on your credit history and income, hard money lenders go a different route — they lend funds based on the collateral at hand, placing far less emphasis on credit scores. Here are brief descriptions of the different types of hard money loans:

·         Fix and Flip Loans: These loans are designed to help real estate investors purchase and renovate homes to sell at a profit.
·         Construction Loans: A construction loan allows investors to build new residential or commercial property.
·         Acquisition Loans: If you need money to purchase property, but don’t need renovation financing, this is the loan for you.
·         Bridge Loans: This loan helps investors purchase new property while awaiting the sale of another property.

Finding the Right Hard Money Lender in Washington D.C.
As hard money lenders — also known as private lenders — become more prevalent, it has become harder to find the right one. The options may even feel like they’re blurring together. In order to find the ideal hard money lender in Washington D.C., there are four qualities you should look for:
·         Speed: A good private lender should be able to approve your loan in just minutes, and they should be able to close in a matter of days. Working with a lender who takes too long could result in another real estate investor securing the property before you can.
·         Transparency: The right private lender will be open, honest and dedicated to keeping you informed throughout the process. Don’t work with anyone who leaves you feeling confused.
·         Interest Rates: Do some research to find the best interest rates available. That said, don’t make the mistake of comparing the rates from a private lender to those of a bank. A private lender’s rates will be higher, due to the higher level of risk.
·         Upfront Capital: Consider how much funding you’ll have to put forward yourself. If a company is asking for a large “engagement fee,” walk away. Standard fees are all you should be paying a private lender.

Get to Know the Hard Money Lenders in Washington D.C.
Don’t settle right away just because the deal seems good. Shop your project around to make sure you find the ideal hard money lender to work with. You want someone who has your interests in mind and is willing to offer you the help you need to do the project right.

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