Baltimore Hard Money Loans
Hard money loans can be a great resource for savvy entrepreneurs. Hard money loans offer the benefits of speed and of flexibility, but carry with them high interest rates. So, how can you know if a hard money loan is right for your Baltimore, MD project or business? Here’s a little guide to help you answer that question.
Who Gets Hard Money Loans?
One of the most common borrowers of hard money loans are those invested in real estate, particularly flippers. The real estate market is a highly competitive market, and oftentimes funds must be raised quickly. It typically takes about ten days for our hard money loans to close, giving you a quick enough turnaround time to close your deal.
How do Hard Money Loans Work?
A hard money loan is an asset based loan. This means that a “hard” asset, typically property, is used as collateral on the loan. If the loan cannot be repaid in the previously agreed upon time, most commonly twelve months, then the asset is taken as payment. This allows for the quick turnaround time, as things like credit score and income are not as important as in traditional loans, because if the loan is not repaid, then the asset is there to safeguard the lender.
Should I Get a Hard Money Loan for My Baltimore Project?
This answer certainly depends. While it can definitely be a great way to receive funds quickly enough to close on a deal, it carries a level of risk. Hard money loans always have high interest rates, typically within the 11-14% range. And of course the borrower always faces the threat of losing their asset if they cannot repay the loan. So basically, you want to make sure you can repay this loan, as you should with all loans, or else you risk losing your entire investment.
To apply for a hard loan today, or to just receive some consultation, call the Baltimore, MD loan specialists today at Maryland Private Mortgage (410-661-8300), or visit our website, MarylandPrivateMortgage.com.
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