First Hard Money Loan

22 Replies

I am planning on doing my first flip in Southern Maryland in the next few months and have started researching hard money lenders in my area.  I am a bit lost trying to pick one.  Can anyone give me some advice of what kind of deal I should be looking for out of a lender?  Any shady practices I should be watching out for?  Any recommendations for lenders in the Maryland area?  

I would simply talk to the various lenders and ask their criteria and their terms. Also ask what is their Sweet spot and what kinds of deals do they like and not like. You want to have some confidence that the lender will loan on the deal before you put it under contract. 

You can be investing to Mortgage loans . Many lander can be easily find out that , you can just tell me about that your work plan i will find out that all money landers for you . 

It depends what you are trying to avoid.  If you can show your credit score, but not income, income, but not credit, or maybe you would like to avoid doing a full appraisal or avoid a pre-payment penalty.  Different HMLs have different guidelines.  There are plenty to choose from.

Thanks everyone, I think I might have to make a spread sheet with all the different requirements from lenders.  I really don't want to pay

junk fees, high points, or a prepayment penalties.

Michael, I have already used my VA loan to purchase two homes in MD. Plus it can only be used for your primary residence and I am looking to flip.


Anyone have any recommendations for Maryland Hard money lenders? I am currently researching national company Do Hard Money. Anyone have any feedback on them? They have 12-18 % and 3-5 point but offer 100% finance but you have to pay 2500 up front and they CHARGE  $695 for an appraisal/assessment for the property you are looking to buy. They refund you the difference once you have payed them back? 

Any thoughts? 

I would suggest building a relationship with a local hard money lender that seems trust worthy. Having their input on the project can be invaluable. Typical terms are going to be around 15% and 5 pts with a high ltv, and a little but better maybe 13/3 with a lower ltv.

Find a local HML that you can work with. A lot of times the Property will make the loan for you so bring a good deal the first time to a New Lender. Expect to pay 3-5% in fees and interest about 12%. If your flipping it ask for only a 1-2 years for your term and maybe an interest only loan.... Good Luck