Looking for HML or PML in the MD area

39 Replies

I am looking to start investing in real estate, specifically flipping homes. I have been reading articles and books and listening to podcast about the home flipping process. I am ready to pull the trigger but the only thing standing in my way is the money necessary to fund my first project. I have some savings that I plan to use for the "quiet" cost of the loan but I will need a loan to purchase the property and fund the rehab. 

Does anyone have any hard money lenders or private money lenders in the Maryland area that you would recommend? I have called a number of lenders but I would rather go with a company based off a recommendation. There are a lot of horror stories surrounding these types of lenders so I want to make sure that I am doing my due diligence. 

Thanks in advance! 

Welcome to BP. I would recommend attending an REI meet up in your area. That will be a good way to network and meet some local HML. That was beneficial in helping me finance my first flip in Baltimore city.

Thank you, Christian!  How do I find these meetings? I did see that some of the event coordinators post events on the Dashboard but are there any other sources that you can recommend? 

Also, it seems like you are familiar with Baltimore city real estate. What do you think about the Edmondson area? There are a ton of homes being sold between $5k-$10k with an AVR of $70k. My goal is to buy something really cheap my first time out so if something goes wrong with the flip, I am not losing much money. And it will serve as a learning tool so I have a better understanding of process and timeline of the rehab and sell the home. 

Search meet ups on BP. There are some big one like BWI meet up that may be close to you. I attended a small one in Frederick and one in Columbia HMB. My first flip was in the Milford/Gwynn oaks area but I am not that familiar with the city. The last 6 have been in carroll and Frederick County. Use the BP tools available to you. One of the most important things you can do is pay the right price up front. If not it will be an uphill battle! Good luck and take action.

Welcome to BP, Kendra!

I'm new to investing too. I attended a free orientation class with the Mid-Atlantic Real Estate Investors Association yesterday at 7pm. It's a membership but it seems pretty worth it. I didn't sign up for it though because I spent enough of my education budget on making my BP account Pro, haha. I definitely consider it in the future, though. It really seems like a great way to learn and connect.

Here's the link to their homepage if you want to see for yourself:


Also, I would recommend that you set up keyword alerts for lenders in the areas of Maryland you're interested in or just Maryland in general, it's helped me out a bunch.


Thank you, Keeynisha! Great advice. 

Did you find that MAREIA provided good tips on how to raise the start-up money to fund the first flip? I was reading a bunch of articles that said that you can start in this business with little to no money and I quickly learned that is not the case. 

Thank you, Christian! I will definitely look into the different meetings. 

I use, and recommend to my clients, Michael Krupp (MD Private Lender) and Jarred Sleeth (Kaine Investments) - feel free to PM me for their contact info.

Regarding Edmondson Village specifically, and flipping in lower cost areas in general, I wouldn't consider flipping anything in Baltimore with an ARV of less then $140k or so. Once you go below that the DOM start to rise significantly and the quality of the borrower/lender drop dramatically. Not saying you can't make money on a flip with an ARV of $90k, I just think it will be a lot more frustrating for you and your team.

Originally posted by @Kendra Rodwell :

Thank you, Keeynisha! Great advice. 

Did you find that MAREIA provided good tips on how to raise the start-up money to fund the first flip? I was reading a bunch of articles that said that you can start in this business with little to no money and I quickly learned that is not the case. 

 In the one meeting that I attended, not really. But, I believe that’s just because the whole purpose of that specific meeting was for you get familiar with MAREIA as a whole. They just put a lot of emphasis on the types of people you could network with when attending their classes. I plan to attend some meetings in the future as a non-member so I can see for myself.

@Joe Norman I was advised by a seasoned investor (and he may be wrong) to start with a relatively inexpensive home ($5k-$10k) so that I can learn the process and get a realistic sense of how long the whole process may take. I thought this would be wise because I do not have enough reserves for a $100k home in Charles Village (my target area). Edmondson Village just seemed to fit into that strategy. 

@Keeynisha Yearwood Gotcha. I will plan to attend the next meeting. Hopefully, I will see you there.

Originally posted by @Kendra Rodwell :

@Joe Norman I was advised by a seasoned investor (and he may be wrong) to start with a relatively inexpensive home ($5k-$10k) so that I can learn the process 

That is reasonable advise, and I'm certainly not going to say that others don't have success in the sub-$140k market in Baltimore.  Just be aware of the potential pitfalls.  Good luck!

Check out Trius Lending Partners.  Dave Bond is a great dude!  You can tell him I sent ya.

@Kendra Rodwell  I think that @Joe Norman is absolutely correct  although I would say an AVR of 120k instead I’m only in my second year of full time investing but I noticed that “flips” between 40k and 70k do tend to sit longer my first two flips were like what youre trying to do and they took forever vs a flip that I’ve just completed I had interest even before the house was complex and that was at 137k. Also don’t limit yourself on the budget I’d say that’s one of the biggest things I regret in my first year. I paid a lot of cash on a lot of small deals  ( purchase price 20k rehab 15k selling at 50k to 60k) but if I would have just learned to leverage sooner I could have made so much more . I’m in the same boat as you I’m looking for Hard money to better leverage deals as well as private money just make sure your not afraid of the deal and don’t limit yourself to much 

@Christopher Haynes , you are absolutely right. I don't want a property to be sitting for too long. But at the same time, in order to purchase a home in the $90-$100k range with an ARV of $150k-$160k (I think this will be a sweet spot for me), I need at least $20k to get started. That means I probably will be waiting another year to flip my first home and I have put this off long enough. I may have a few private investors to utilize but there are a bunch of obstacles with that route. I am just looking to get started.

Ive extensively done successfully what you are attempting to do in baltimore over a number of years, in the areas you are looking at. First, books are all well and good until reality smashes you in the face. I could give you endless examples. Heres a bunch for you: 

1. Small flips have minimal room for mistakes. A 20k potential profit means errors must be small. Also means keeping costs low. One miscalculation could put u in the red. 

2. You need to know construction intimately, labor/materials and how to minimize both. Do you? If not, hire someone who does, and pay that person x to teach u. 

3. Hard money does not want to deal with you because you have no experience/track record.(unless you want to put up a ton of money minimizing their risk) Partnering with someone that an hml knows will get you in and protect the hmls liability. 

4. See number 2.

5. See number 4. 

Overall, independent of area...understand the basic principle that if you buy something in an area that people will purchase a home, make it into something nice, and price it reasonably, then someone will buy it. 

I agree with @Jeffrey H. For best results (for both you and your lender) you should be looking to team up. 

Getting funding for your first deal is going to be tough if that is how it is presented, which is what you've done here.

Thanks, @Jeffrey H.   and @Tom Gimer for your input. I happened to have worked in stadium operations for over 4 years so I have a pretty good handle on estimating cost and material. 

Regarding the loan terms, I am only going by what HMLs are advertising on their websites, after doing the math based on their terms. I do not want to put up that much money up front, hence this post. It appears there are a few HMLs that are willing to lend to newbies like myself. And I can understand them wanting to protect their interest, I would too. So I am willing to pay the price at the beginning of my career to get some experience. 

@Kendra Rodwell I don't doubt that you've got some aspects of this well covered... but estimating is only a small portion of what you're stepping into. 

Give serious consideration to teaming up. You'll get a better rate and avoid having to discover all the things you don't know while racing against the clock to keep your deal profitable.

There are multiple angles/ strategies/ application etc... in real estate, so there is perfect answer in your situation.
There are many areas to learn/adapt.

If you look at your first flip as a 20k master degree, I say jump on it. Sitting and waiting to have right amount of money is not going to make you any money, and it is not going to teach you anything.

If you make profit perfect.
If you break even or loose a little thats also fine, you met with contractors, lender, title companies, may be renters along the way and banks to refinance it....
You didn't make money but you got education.

It is going to be a STRESSFUL process, I guarantee it. if you are ready then go ahead.
Knowing yourself and knowing what you can handle is more important I think.

I agree that teaming up is a great idea, or start talking about it, find friends who would do it with you, tell your friends she/ he might have a cousin who has money.

You don't have to sit another year to save the right amount. You have to start selling the idea, if you are ready, you will find somebody.

You have to decide and be ready.

Good Luck!!!

I meant "there isn't perfect answer in your situation"

App doesn't let me edit it somehow :))))

@Tom Gimer Thanks for the advice. I have had a few REIs contact me so I may pitch the idea to them to see if they are interested in teaming up on my first deal. 

Thanks again!

@Ozzy Sirimsi you are absolutely right! I have been talking to different investors and even on this thread, there are so many ways to get started. One of the things that I keep hearing is that I must take action. And that is what I am trying to do. 

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