Investing in real estate is one of the best ways to build wealth. Many family offices have built generational weatlth by investing and diversifying into real estate. Investing into real estate isn't as straight forward as opening a brokerage account and thats why it's not as popular which might be one of its advantages. OfferMarket is a Maryland based hard money or private money lender that also hosts an off market property marketplace. The loans extended by OfferMarket have been applied to a range of different property types and locations across Maryland such as Baltimore, Columbia, Germantown, Silver Spring, Waldorf, Frederic, Ellicott City, Glen Burnie, Rockville, Gaithersburg, Bethesda, Dundalk, Bowie and Towson. OfferMarket employees latest technologies to streamline the lending process. Online portal speeds up the data collection phase and does it on your schedule, kicking off the loan processing and ultimately reducing time to close by half compared to traditional lenders that need to get you on the phone to even provide you with something as basic a loan quote. OfferMarket is building out online tool to further simplify the lending process which means you get lower rates and origination points because our systems are more efficient than having an army of loan officers that would increase the price of your loan.
OfferMarket's experience and technology come together to provide you with the highest level of service and speed to enable you to be ultra competitive with other investors. What that means for you is a streamlined documents collection, an online portal that always has necessary documents (never need to pick up a phone again to get another copy of loan documents), online enabled appraisals, fast underwriting process and below industry average time to close the deal. All of these factors will help you win more deals, make more cashflow and grow your real estate portfolio without breaking a sweat. OfferMarket has a wide range of loan offering which is suitable for investor with any level of experience or portfolio size. All of our loans are investor loans which means we don't require tax returns, every qualified based on the quality of the deal in front of us. OfferMarket is the most competitive hard money lender Maryland.
There are countless private money lenders maryland and surrounding areas like Rockville, Silver Spring, Waldorf, Frederic, Gaithersburg, Bethesda, Dundalk, Bowie and Towson, Baltimore, Columbia, Germantown, Ellicott City, Glen Burnie, but OfferMarket stands firm on applying latest technologies to drive down costs of lending for the benefit of our clients. By using latest technologies we can offer quicker closing time as well as substantially lower closing costs which means you get to keep more of the cash flow from your property. OfferMarket, unlike many private money lenders maryland or hard money lenders maryland, won't waste your time with an introduction phone call just to give you a loan quote. OfferMarket has a completely automated way to provide you with our competitive loan quote completely online and on your schedule. Many investors come back to us an get a quote for a new deal several times a week because its so easy and fast and you never have to call anybody and wait for them to pick up or return your call or stumble collecting information. Once you get a quote, you can continue with the process completely online. Some investors can submit all their documents in under 10 minutes to get a pre-approval (completely online) and than once they have a purchase contract, complete remaining steps within an hour, completely online.
A hard money loan is a form of short-term lending that is backed by the property, not investors income or credit. When OfferMarket provides you a quote, our system only looks at the parameters of the deal. If the deal is sound and you meet some basic requirements then the loan will most likely be funded. One of the most important factors is the differenve between purchase price and the after repair value of the property. The wider the margin between these two value, the higher the risk cushion that allows for a higher loan to value financing on the deal. Thats the reason this type of lending is call "hard" money lending, because the loan is based on hard assets such as property that is used as collateral for the loan. This also allows for investors to put in smaller amouts of cash up front into the property compared to other types of funding.
Fix and flip is a real estate term to describe the activity of buying a house, rehabbing it, and selling it for a profit. House A was in poor condition and available for sale on OfferMarket for significantly below it's after repair value (ARV). Joe the flipper bought the house for $100,000 because he knew that if he invested an additional $100,000 into repairs, he would be able to sell it for $300,000 based on comparable homes ("comps") in the neighborhood. Because he sold his completed fix and flip on OfferMarket, he avoided real estate agent commissions and received a competitive price because he made buyers compete with an auction listing. Joe made $100,000 in gross profit and over $50,000 in profit net of short term capital gains tax, closing costs and interested owed to his private lender.
A bridge loan is another name for a fix and flip loan. Its a short-term loan used by an investor to buy and fix a property to the point where they can resell it for a new after repair value or refinance it to get the cash out and rent it. These are short term loans with maximum of 18 month pay off period and come with a high interest rate because of higher risk that they present for the lender. Despite higher price they are a valuable tool for construction and increasing value of investors portfolios.
Turnkey rental properties are single family and multifamily houses that are sold to rental property investors in "turnkey" condition with tenants in place. Turnkey rental property investors are typically looking for a hands-off way to invest in the rental property asset class without needing to handle the core components of rental property investing: finding a property that needs renovation, renovating the property, screening tenants and leasing the property, managing the property and tenants Many turnkey rental property investors are out-of-state investors living in real estate markets that are not attractive for rental property investing.
Funds from construction loans (commonly referred to as "fix and flip" and "bridge" loans) are disbursed to the borrower via draw request. A draw request typically involves a submission of invoices and receipts of work performed and materials purchased associated with work that has been completed per the scope of work (SOW) or budget that is submitted to your lender.The borrower or the general contractor representing the borrower will then schedule a draw inspection with the lender. An inspector representing the lender will visit the job site and confirm the work completed and materials on site so the lender can reimburse based on the inspected progress.
DSCR means Debt Service Coverage Ratio. DSCR is a ratio calculated by taking a rental property's operating income and dividing it by the cost of a loan. DSCR is a metric private lenders and commercial lenders use to determine the amount of a loan they are willing to provide for a single family or multi-family rental property.