Financing real estate investments with hard money loans in DC is a great way to quickly take advantage of a hot commercial or residential deal. Such loans are for borrowers that do not have the time to search and wait for a traditional mortgage loan to be approved. Its not that they can not get a traditional loan, it is more the fact that such financing is not really what they need. Using hard money is about finding a private institution or individual that is looking to make higher than usual returns on their money. They have no interest in leaving their money tied up in long term investments. Similar to the borrower they want to get in and get out quickly while making a profit so they can move on to the next deal.
The real estate market has taken a big hit in the last few years and many people have lost a lot of money and their homes in the process. That does not mean that there is not money to still be made with a smart investment. Using hard money loans in DC, Virginia, or Maryland is a great way to turn a rehab construction project into some fast cash. Even if there is a home or townhouse that would make a great rental property using hard money may be a perfect way to grab it off the market until securing refinancing is available. Loans of this type are typically only made for lengths of six months to two years and with much higher interest rates, somewhere between 13-18%. The points that must be paid will be higher as well, usually 4-10 points will be due up front, but some may be built into the loan depending on what type of loan is approved.
Approval for hard money loans in DC can be received within 24-48 hours and settlement can take place in less than a week. Plan accordingly though because the lender will still need to have an appraisal done on the property, order and inspect title work, and have lender documents drafted. This process can take anywhere from a few days to weeks so timing is very important when financing a project with hard money. If the purpose of the loan is for a rehab project than contractor bids, materials and labor costs may need to be presented to the lender, and if refinance is the purpose than a credit check will most certainly be necessary before financing is approved. Using hard money is a great way to secure financing quickly for an investment deal, but a solid exit strategy is a must to ensure the financial results desired are attainable.