Real estate offers portfolio diversity, and with careful planning and following a strategy, investors can build great wealth and financial freedom. Diversity can protect you from economic downturns in any one sector of the market, and real estate allows investors to live out their golden years on their terms, doing what they enjoy. In addition, passive income in retirement earned through real estate investments offers a hedge against the ravages of inflation because rental rates tend to keep pace with increases in the cost of living.
Hard money loans or bridge loans allow investors a quick and flexible solution to hold onto their cash while building their holdings using cash from someone else, a private money lender. This short-term financing option is typically to rehabilitate or develop a property and then sell or flip the property. Read on as we explore what Baltimore real estate investors need to know about hard money loans
The Cons
While hard money loans have a lot of advantages, there are some drawbacks that potential borrowers need to be aware of. First and foremost amongst these is the higher interest rate. This is due to the fact that hard money lenders are taking on more risk than traditional financial institutions. In addition, costs for processing a hard money loan are typically higher than for a conventional mortgage. Finally, hard money loans are usually only for a shorter term than regular mortgages, from one to three years. This can make them difficult to repay if the borrower does not have a steady income stream from their investment property.
Conventional Loan Denied
For those who cannot pursue a conventional loan because of the risk of the investment or their credit status, Baltimore real estate investors need to know about hard money loans, which offer flexibility because of their looser restrictions and the differing requirements for loans than conventional lenders.
Quick Process
Another thing that Baltimore real estate investors need to know about hard money loans is a quick application and approval process. They make a great option to keep your investment business rolling with fast and convenient access to cash.
Experience Matters
Something else Baltimore real estate investors should keep in mind about hard money loans Baltimore is that you can improve your standing by working with the same hard money lender repeatedly your interest rates can go down. As you gain experience, prooving your ability to make successful investments, you become less of a risk.
The professional investors at CR of Maryland LLC are local Baltimore real estate investors with the know-how to help you understand how hard money loans can benefit your real estate portfolio. If you’re ready to start, let the professional investors at CR of Maryland LLC help guide you as you learn the ropes of real estate investing or help you handle your investments to sit back and enjoy your passive income. Let us help you find great deals in Baltimore, don’t forget to ask about the current inventory at CR of Maryland LLC of the best investment deals available. Whether you are investing in flipping or needing help managing your properties and everything in between, at CR of Maryland LLC, we have a network of highly regarded local providers who offer a solution to get the job done right. Call CR of Maryland LLC at (443) 391-7080.