<br>

If you're looking for a **hard money lender in Maryland**, you're in the right place! The purpose of this article is to provide you with a complete understanding of hard money, and why it is so important to select the right hard money lender in order to grow your real estate investing business.

<br>

## Hard Money Lenders Near Me

<br>

Working with a lender that understands your local market is critical in ensuring the success of your transaction. With offices in Baltimore and Gaithersburg, we take pride in serving hundreds of real estate investors here in Maryland. If you're looking for fix and flip loans or DSCR loans in Maryland, we would love to be your lender.

<br>

## Hard Money Definition

<br>

The term "hard money" refers to a non-bank loan secured by a physical asset -- most commonly real estate. You may have heard the following terms, which all mean the same thing:

<br>

- hard money lender
- private lender
- private money lender

<br>

Many real estate investors believe there is a difference between a *hard money lender* and *private lender*. The truth is, there is no agreed-upon difference based on naming, and they are generally the same concept. You need money for a real estate investment project, the hard money lender or private lender provides you with a loan on terms that are mutually agreeable.

<br>

## Difference between Hard Money Lender and Private Lender

<br>

It is impossible to come to a consensus on the difference between hard money and private money. For instance, many in the industry believe that hard money lenders are more corporate, strict and ruthless, while private lenders are more personal, local and small.

<br>

There is a major public relations push by private lending associations to phase out the term "hard money" because of the belief that it carries a negative connotation of excessively high interest rates and questionable if not unethical business practices.

<br>

Therefore, the term "private lender" is becoming the chosen way in which a growing number of lenders self identify. These same lenders used to identify as "hard money lenders" but are being pressured to discontinue using that term.

<br>

OfferMarket, headquartered in Baltimore, operates an [industry-leading private lending business](https://www.offermarket.us/loans) that serves hundreds of real estate investors across the state of Maryland. Our clients range from experienced rental property investors and flippers to beginners. We choose to refer to OfferMarket Capital as a private lender, though we recognize that you could just as easily refer to us as a hard money lender and we are fine with that! What matters to us is not how we are classified, but rather <u>how we support our clients who are building wealth through real estate by revitalizing neighborhoods across the state of Maryland</u>.

<br>

1. everyday low pricing
2. remarkable client service
3. easy to use online platform
4. complimentary services ([insurance](https://www.offermarket.us/insurance), [off market listings](https://www.offermarket.us/insurance))

<br>

## Fix and Flip Loans

<br>

Otherwise known as "hard money loans", "bridge loans", "construction loans" or "rehab loans", fix and flip loans are a core offering of hard money lenders. Fix and flip loans are short term, interest-only loans to purchase and renovate distressed real estate.

<br>

## How fix and flip loans work

<br>

Your fix and flip loan amount is determined by the after repair value ([ARV](https://www.offermarket.us/real-estate-glossary/arv-after-repair-value)) of the property. You submit our [scope of work](https://www.offermarket.us/real-estate-glossary/scope-of-work) which we review and provide to an appraiser in our network. The appraiser inspects the property and determines their opinion of value "as repaired" or "subject to repairs" based on the current condition of the property, the scope of work, and similar houses that have recently sold, "[comps](https://www.offermarket.us/real-estate-glossary/comps)".

<br>

The initial component of your loan is funded at settlement via a title company of your choosing (we have preferred title companies if you need a recommendation!). These proceeds ultimately pay the seller, and in some cases your closing costs. Interest on this portion of your loan starts accruing as of the date of settlement.

<br>

The rehab component of your loan will either be disbursed to you via reimbursement based on [draw request](https://www.offermarket.us/frequently-asked-questions/what-is-the-draw-request-process-for-offermarket-capital-construction-loans), or by advancement based on draw schedule ("[advanced draws](https://www.offermarket.us/real-estate-glossary/what-is-advanced-draws-fix-flip-loans)"). 

<br>

Depending on your selected loan options and your loan amount, you will either pay [full boat interest](https://www.offermarket.us/real-estate-glossary/full-boat) ("[dutch interest](https://www.offermarket.us/real-estate-glossary/dutch-interest)"), or [as disbursed interest](https://www.offermarket.us/real-estate-glossary/as-disbursed). 

<br>

Since fix and flip loans are interest-only, your principal loan balance is not paid off until you sell or refinance the property. To coordinate your payoff, we provide a payoff statement to your title company to ensure our fix and flip loan is fully repaid and removed from the title of your property.

<br>

## Who uses fix and flip loans?

<br>

Fix and flip loans are used by flippers, and rental investors. Flippers have an exit strategy to sell the property for a profit, while rental property investors have an exit strategy of a refinance into a longer term loan, typically a DSCR loan which we will explain below.

<br>

## Fix and flip loan terms

<br>

- **Interest rate: [get instant quote](https://www.offermarket.us/loans)
- **Origination points**: 2 to 3 (% of loan amount)
- **Loan to purchase price**: 70% to 100% 
- **Loan to rehab budget**: 100%
- **Loan to After Repair Value (["LTARV" or "ARLTV"](https://www.offermarket.us/real-estate-glossary/ltarv))**: 65% to 75%
- **Term**: 12 to 18 months
- **[Prepayment Penalty](https://www.offermarket.us/real-estate-glossary/prepayment-penalty)**: none

<br>

## Fix and Flip Loan Interest Rates

<br>

At OfferMarket, we believe our best clients are our most informed clients -- it's our responsibility to provide you with transparency to understand how our terms compare to other lenders. That's why we publish the [Fix and Flip Loan Interest Rate Index](https://www.offermarket.us/blog/bridge-loan-interest-rate-index).

<br>

<iframe width="600" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vTp7uD-oV_hgrkpa2ScLqcKd-WJZABYdHAa4ir8ScVSnr8cCZ4Q4m7MVL5b-4UsU-SCXCXGbeVBVBGR/pubchart?oid=262687025&amp;format=interactive"></iframe>
<br>

## Fix and Flip Loan Fees

<br>

- Origination fee "points" (% of loan amount)
- Underwriting fee (commonly $495)
- Legal/doc prep fee (commonly $995)
- Draw fee (commonly $250)

<br>

## DSCR Loans

<br>

Hard money lenders also provide **DSCR loans**, otherwise known as "**rental loans**" which are typically 30 year fixed rate, fully amortizing mortgages based on a rental property's cash flow.

<br>

DSCR means debt service coverage ratio -- it is a cash flow metric. DSCR of 1 means the property operates at breakeven cash flow. DSCR below 1 means the property generates negative cash flow and the owner needs to pay out of pocket in excess of monthly [PITIA](https://www.offermarket.us/real-estate-glossary/piti) to cover the shortfall. DSCR greater than 1 means the property generates positive free cash flow. Most DSCR loan programs require a minimum DSCR of 1.1 in order to qualify for a given LTV (loan amount).

<br>

## How to calculate DSCR

<br>

There are a few different ways to calculate DSCR, so please take a moment to review and use our handy [DSCR Calculator](https://www.offermarket.us/tools/dscr-calculator)!

<br>

## DSCR Loan Interest Rates

<br>

Interest rates for DSCR loans are determined based on the following factors:

<br>

- LTV
- Borrower [tri merge credit score](https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report)
- Borrower experience
- Property type
- Risk free interest rate
- Institutional credit investor demand for DSCR loans 

<br>

The last item, institutional credit investor demand, is what causes interest rates to fluctuate beyond what is in the borrower's control. This is based on a premium to prevailing risk-free rates (i.e. US Treasuries) based on perceived credit in the housing market and broader economy. Ultimately, because the DSCR loan will likely be included in a securitization, the interest rate will be priced based on what the institutional investor determines to be an acceptable rate in exchange for risk.

<br>

We publish the [DSCR Loan Interest Rate Index](https://www.offermarket.us/blog/dscr-loan-interest-rate-index) in order to provide rental property investors with complete transparency into real-time and historical pricing. This helps you get the best terms for your DSCR loan.

<br>

<iframe width="600" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRJPw1fYWqj_5mdlNBrD5MLne_ApqpOXlNmkmNE_sZfPgsbn9pU0mWUenEO1x6WE9237S7jzaQE2Hig/pubchart?oid=262687025&amp;format=interactive"></iframe>

<br>
<br>

**Note:** index rates are based on 30 year fixed rate, fully amortizing, 75% LTV, 1.2 DSCR and 720 [tri merge credit score](https://www.offermarket.us/blog/what-is-a-tri-merge-credit-report). Interest rates are an approximation based on best available nationwide private lender data for competitive rates. Rates are lower at lower LTV and higher credit score.

<br>

## DSCR Loan Fees

<br>

Lender fees for DSCR loans include:

<br>

- Origination fee "points" (% of loan amount)
- Underwriting fee (commonly $495)
- Legal/doc prep fee (commonly $995)

<br>

<iframe width="600" height="371" seamless frameborder="0" scrolling="no" src="https://docs.google.com/spreadsheets/d/e/2PACX-1vRJPw1fYWqj_5mdlNBrD5MLne_ApqpOXlNmkmNE_sZfPgsbn9pU0mWUenEO1x6WE9237S7jzaQE2Hig/pubchart?oid=1655376762&amp;format=interactive"></iframe>

<br>

While it is important to understand all fees charges by hard money lenders for DSCR loans, the origination fee is a common differentiator. Most private lenders charge 2 points, at OfferMarket we typically charge 1 point, as long as the loan amount is $150,000 or higher.

<br>

## Fees Charged by Hard Money Lenders

<br>

As discussed above, hard money lenders charge some or all the following fees in addition to the interest rate of the loan:

<br>

- Origination fee ("points")
- Underwriting fee
- Servicing setup fee
- Legal / doc prep fee
- Admin fee
- Processing fee

<br>

At OfferMarket, we believe that the only acceptable fees are Origination Fee, Underwriting Fee, and Legal/Doc Prep Fee. Admin Fee and Processing Fee are add-ons that should not be necessary.

<br>


## Hard Money Lender in Baltimore

<br>

Being headquartered in Baltimore, MD, we understand the local market. We take the time to review your deal and provide you local market insights and feedback to help ensure your deal is profitable and low risk.

<br>

Whether you're investing in Baltimore City or Baltimore County, we know the market and are comfortable making fast decisions to price, approve and fund your loan.

<br>

## Do hard money lenders have to register in Maryland?

<br>

Hard money lenders in Maryland are not required to be licensed (i.e. NMLS) because they provide business purpose loans. Hard money lenders providing loans for investment properties in the state of Maryland cannot use a borrower's primary residence as collateral.

<br>

## Best Hard Money Lenders In Maryland

<br>

We launched [OfferMarket Capital](https://www.offermarket.us/loans) after seeing fist hand, just how uncompetitive and lacking in transparency the vast majority of hard money lenders are. We believe that in order to grow, real estate investors like you need a hard money lender with low fees, high transparency, and remarkable service powered by technology.

<br>

Given our local market expertise, commitment to everyday low pricing, dedication to remarkable client service, easy to use online platform, and complimentary services (insurance and off market listings), we are confident that **OfferMarket is the best hard money lender in Maryland**. 

<br>

We specialize in fix and flip loans and DSCR loans and our terms are consistently the most competitive in the industry. Our mission is to help you build wealth through real estate and we would love to be *your* hard money lender. Let's get started today! Get your[ instant quote and pre-approval](https://www.offermarket.us/loans) or call us at **443 492 9941**.

<br>

Looking for hard money lenders in Maryland? This guide is for real estate investors who are looking for the perfect lender for fix and flip bridge loans, ground up construction loans, and DSCR rental loans for individual properties and portfolios.

large_Hard Money Lenders Maryland (1).png

medium_Hard Money Lenders Maryland (1).png

small_Hard Money Lenders Maryland (1).png

thumbnail_Hard Money Lenders Maryland (1).png

Hard Money Lenders Maryland (1).png

Hard Money Lenders In Maryland - OfferMarket Capital

Hard Money Lenders In Maryland

Looking for licensed home improvement contractors in Baltimore? There are 1424 actively licensed home improvement contractors in Baltimore. 

Home Improvement Contractors Baltimore MHIC

large_Home Improvement Contractors Baltimore.jpg

medium_Home Improvement Contractors Baltimore.jpg

small_Home Improvement Contractors Baltimore.jpg

thumbnail_Home Improvement Contractors Baltimore.jpg

Home Improvement Contractors Baltimore MHIC.jpg

Home Improvement Contractors Baltimore | OfferMarket Directory

Home Improvement Contractors Baltimore

<br>

Twitter is a great medium to consume information and contribute to the conversation. These are our favorite real estate-focused twitter accounts.

<br>

## 1.  BiggerPockets

<br>

<a href="https://twitter.com/BiggerPockets?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @BiggerPockets</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 2. HousingWire

<br>

<a href="https://twitter.com/housingwire?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @housingwire</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 3. NHMC (National Multifamily Housing Council)

<br>

<a href="https://twitter.com/ApartmentWire?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @ApartmentWire</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 4. Mortgage Bankers Association

<br>

<a href="https://twitter.com/MBAMortgage?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @MBAMortgage</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 5. National Association of Home Builders (NAHB)

<br>

<a href="https://twitter.com/NAHBhome?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @NAHBhome</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 6. Jake REI

<br>

<a href="https://twitter.com/jkostecki_rei?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @jkostecki_rei</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 7. Nareit (National Association of Real Estate Investment Trusts)

<br>

<a href="https://twitter.com/REITs_Nareit?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @REITs_Nareit</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## 8. St. Louis Federal Reserve

<br>

<a href="https://twitter.com/stlouisfed?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @stlouisfed</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Bonus: Real Estate Blogs

<br>

<a href="https://twitter.com/usrealestate101?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @usrealestate101</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Follow OfferMarket on Twitter

<br>

<a href="https://twitter.com/OfferMarketUS?ref_src=twsrc%5Etfw" class="twitter-follow-button" data-size="large" data-show-count="false">Follow @OfferMarketUS</a><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br>

<br>

## Related content

<br>

[Best Real Estate Blogs](https://www.offermarket.us/blog/best-real-estate-blogs)<br>

<br>



These are the best real estate twitter accounts to follow. If you're on Twitter and you're interested in real estate investing, you'll want to follow these accounts.

large_Blog - Best Real Estate Twitter Accounts - MetaImage.jpg

medium_Blog - Best Real Estate Twitter Accounts - MetaImage.jpg

small_Blog - Best Real Estate Twitter Accounts - MetaImage.jpg

thumbnail_Blog - Best Real Estate Twitter Accounts - MetaImage.jpg

Blog - Best Real Estate Twitter Accounts - MetaImage.jpg

8 Best Real Estate Twitter Accounts To Follow - OfferMarket

8 Best Real Estate Twitter Accounts To Follow

Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.