At Pine Financial Group, we have over 14 years experience working with real estate investors throughout Maryland. Our goal is to help investors find financing that suits their unique needs, and we are committed to helping investors succeed in their real estate ventures.
We offer various financial solutions, including hard money loans with flexible repayment terms and competitive interest rates.
Hard money loans are a type of private loan funded by companies (or individuals) instead of traditional banks or other financial institutions. And they are a great option for real estate investors. You can use hard money loans for different purposes, including purchasing a property, refinancing a property, or renovating a property.
We started in Minnesota more than ten years ago with this loan. It is by far the most popular because it helps newer and experienced investors make more money. With the 100% Rehab Loan, we finance your purchase and repairs, limiting or eliminating the need for a down payment.
However, investors can also use them to rehab rental properties. If you purchase a property to rent out, you’ll need to ensure it’s in good, livable condition. A hard money loan can allow you to make the necessary repairs and renovations. Once you rent the property out, you can refinance the property using a long-term conventional loan to pay off your hard money loan.
Hard money loans are backed by equity in the property itself and by the after-repair value (ARV) of the property. There are two main reasons why this benefits borrowers.
Firstly, this means that the loan is much less risky for the lender, resulting in more lenient lending criteria. Secondly, it also means that it's easier to secure financing since the loan amount depends on what the property is estimated to be worth after repairs are made (and not its current value).
As a result, you could potentially secure a larger hard money loan compared to a conventional loan.
Your creditworthiness does not play a role in determining whether or not you qualify for a hard money loan. Hard money lenders typically use the property's value, not your personal financial history, to approve a loan. Therefore, as long as the property can serve as collateral for the loan, you can still qualify even if you have a less-than-perfect credit history.
Hard money lenders can approve and fund loans much faster than banks or other financial institutions, which can take weeks or even months. As a result, you'll be more likely to get the financing you need so you can take advantage of time-sensitive real estate investment opportunities.
Because hard money loans are short-term loans, there are a few types of investments that hard money loans tend to be better suited for. Hard money loans are particularly useful for the following types of projects:
If you're planning to rehab a property, a hard money loan can be a great option since the loan amount depends on the property's ARV (and not its current value). As a result, you can secure the money you need to make the necessary renovations and repairs on your property. You can also use rehab loans to cover both the cost of the property and the repairs.
A distressed property is a property that was either foreclosed on by the bank or is on the brink of being foreclosed on. As a result, the seller will often list the property below its market value to sell as quickly as possible.
When an investor finds a distressed property, they will need to jump on the opportunity since the seller won't likely be able to wait around for a loan to go through. A hard money loan is the perfect solution because it is available quickly and can provide the investor with the money they need to buy the property before it’s sold to another bidder.
In Maryland, the law requires anyone providing mortgage loans to have a license to operate in the state. In fact, not only must anyone issuing at least three mortgage loans in a year have to have a license, but they must also comply with several federal laws, including the Truth in Lending Act and RESPA.
Because of these laws, there are fewer predatory lenders in Maryland to worry about. Knowing this, investors can be confident working with hard money lenders to achieve their real estate investment goals.
Pine Financial Group has been helping real estate investors finance deals using hard money loans since 2008. As a result, we have a wealth of experience in hard money lending and always strive to help our borrowers succeed.
Not only are we familiar with all of the laws regarding lending in Maryland, but we are also very familiar with the Maryland real estate market.
As a result, we understand the ins and outs of both the lending process and the real estate industry – and we’re here to help you every step of the way.
We aim to help investors secure the financing they need to complete their real estate deals in Maryland. As such, we offer a variety of hard money loans that are structured to meet the needs of our borrowers.
No two deals are alike, which is why we work with each borrower on a case-by-case basis to ensure that we provide the best possible loan for their particular situation. Some of the hard money loans we offer include:
If you're planning to renovate a property, we can help. We offer rehabilitation loans for purchasing and renovating properties, and we base the loan amount on the property's ARV. Using our rehab loans, you can get the money you need to both purchase and repair the property you’re investing in.
Additionally, we also offer smaller loans for those who only need money for renovations and repairs. These loans are easier to quickly pay off, making them ideal for rehab projects.
If you're looking to buy a commercial property, we offer commercial bridge loans to help you purchase and renovate the property. Bridge loans are ideal for borrowers who need to close a real estate deal quickly.
Generally speaking, it can take months to get traditional financing for a commercial property. A bridge loan is the perfect short-term solution to promptly "bridge the gap" and secure the property as fast as possible. Then, once your traditional loan finally goes through, you can use that to pay off the original bridge loan.
Most lenders sell their conventional loans to third parties on the secondary market. Portfolio loans are unique because they are issued by a lender and then held in the lender's portfolio. That means the lender does not sell the loan on the secondary market and, as a result, these loans can be tailor-made to meet the borrower's needs.
Lenders are more likely to provide portfolio loans to borrowers with real estate investment experience or an existing relationship with the lender. At Pine Financial Group, we strive to build long-term relationships with borrowers and provide portfolio loans for various purposes, including purchasing and renovating properties.
Our 90% acquisition loans are for investors looking to buy a property, but who don’t necessarily have the funds to cover the full purchase price yet. A 90% acquisition loan lets you borrow up to 90% of the property's purchase price, meaning that you only need to come up with 10% of the purchase price.
This is a remarkably small amount when considering the risks typically involved in lending to real estate investors. Traditional lenders rarely offer loan terms like these to an investor, especially to purchase a property that is in poor condition.
There are several reasons why Maryland real estate investors choose us as their lending partner. First and foremost, we have a significant amount of experience. We’ve helped countless investors throughout Maryland secure the financing they need to complete their real estate deals. Additionally, we offer:
We understand that each real estate deal is unique, so we tailor our loans to meet each borrower’s individual needs. We are not beholden to rigid underwriting guidelines, which means we can be more flexible in our loan approval process. For example, we won't automatically reject your application if your credit score isn't great or you have any blemishes on your credit history.
Traditional loans can take weeks or even months to get approved. We know that time is of the essence in real estate, which is why we offer quick approvals. You can expect your funding to go through within ten days – and sometimes within as little as a day or two.
You'll have more opportunities to invest in properties with our loans. We're not as concerned about the property's condition as we are about its potential. That means that you can buy a fixer-upper and know that you'll be able to get the financing you need to make repairs and renovations.
By working with us, you’ll know that you can get fast financing to ensure that you won’t miss out on future real estate opportunities.
The following are a few frequently asked questions that we get from Maryland real estate investors:
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