Real Estate Tips |6 min read

How to Flip Houses With a Hard Money Lender

Hard money loans are great for many types of investments, including fix and flip real estate properties. Investors can quickly obtain a property, make valuable repairs, and put it back on the market for a profit. However, it’s crucial for investors to develop a plan to find the best property and hard money lender for their purchase. So, if you want to learn how to flip houses using hard money loans in 6 steps, just keep reading. 


How to Flip Houses Using Hard Money Loans: 6 Steps for Investors

Flipping a home with a hard money loan is a great way to earn a quick profit and build your investment portfolio. However, investors must be willing to put in the work to fix up the property and pay off the hard money loan quickly. That said, it can be broken down into six simple steps if you want to learn how to flip houses using hard money loans. 


  1. Find a Property
  2. Evaluate the Property
  3. Find a Hard Money Lender
  4. Apply for a Hard Money Loan
  5. Rehab the Property
  6. List the Property For Sale

Find a Property

Before you even think about financing, you have to find a property that you want to fix up. This step can be long and tedious, but exploring your options and finding a property you can afford to flip is important. 


Additionally, make sure you’re looking at properties in profitable locations. After all, your goal is to make money on the investment, so finding a suitable location is crucial. Then, you’ll want to evaluate the property.

Evaluate the Property

Before you go through with a loan on a potential fix and flip investment, thoroughly analyze the property. That said, during your analysis, there are two main factors to pay attention to–the price and condition of the property. 

You’ll want to bring in an inspector to determine any significant issues. Additionally, you’ll want to get an estimate of how much repairs will cost for the entire property. Then, you’ll want to compare your property with active listings and recently sold properties. 

Find a Hard Money Lender

Once you feel confident about your real estate purchase, it’s time to find a hard money lender. That said, finding a licensed hard money lender that aligns with your investment goals is essential during this process. 

You’ll want to look at your lender’s location, interest rates, past client reviews, and loan requirements. For instance, if you need quick approval, you’ll want to find a lender that offers fast loan approvals. However, faster turnarounds may mean higher interest rates. Once you’ve got all the information you need, you can proceed with your hard money loan. 

Apply for a Hard Money Loan

Once you’ve found a lender that you’re comfortable with, it’s time to apply for your hard money loan. Each lender has different hard money loan requirements, but some common conditions include the following: 

  • Significant Down Payment
  • Minimum Credit Score
  • Reasonable Target Property
  • Proof of Income
  • Some Real Estate Experience

Gathering all of the required documentation for your hard money loan is important. Some of the paperwork you’ll need includes the following: 

  • Loan Application
  • Tax Records
  • Bank Statements or Proof of Income for a Down Payment
  • Deed of Trust
  • Note
  • Privacy Policy

Each lender has different requirements, so check with your specialist to see what paperwork you need to provide. 

Rehab the Property

Once you’ve got your loan, you’ll want to get to work rehabbing the property. Whether you’re working on the property yourself or hiring contractors to do the job, you’ll want to have a strict timeline. After all, the goal is to flip the property as efficiently as possible. First, however, make sure the rehab work is high-quality. 


Once the rehab work is complete, you’ll want to re-evaluate the property to determine how much you can list it for. Again, follow the same steps as before to analyze the property and compare it to others. 

List the Property For Sale

Finally, once you’re happy with the renovated property, you can list it for sale. The key is to sell it fast–so list it reasonably. However, don’t undermine the renovations that you put in. If you don’t have much selling experience, consider pairing with an agent to help you list the property. 

How Can Hard Money Loans Help Investors?


It’s crucial to note that hard money loans aren’t suitable for all investors. However, there are several scenarios where they’re convenient and helpful for investors. For instance, getting a hard money loan is generally more straightforward and much quicker than a traditional bank loan. That said, if you want to learn some of the pros and cons of hard money loans, just keep reading. 

Pros of Hard Money Loans

  • Fewer Requirements- Hard money loans have less strict requirements for credit scores. Your credit doesn’t necessarily hold as much weight as your property investment since the property is used as collateral for your loan.
  • Flexible Terms- Hard money loans are quite flexible compared to traditional loans. You can generally negotiate terms and conditions, whereas bank loans are strict and solid. 

Cons of Hard Money Loans

  • Higher Interest Rates- Hard money lenders take on a lot of risks, so interest rates are generally higher than usual. As such, consider a higher interest rate if you plan on exploring a hard money loan. 
  • Larger Down Payment- Some hard money lenders require a significant down payment, depending on your investment and loan terms. However, a massive down payment is not always required.

Tips for Finding a Hard Money Lender for Your Investment

Finding the right lender for your investment is crucial. That said, there are a few tips to keep in mind while searching for the best hard money lender in Maryland.

  1. Find a Specialist- Private investors and hard money lenders aren’t the same. Official hard money lenders need licensing by the state’s housing and real estate department. So, before working with a lender, you’ll want to see proof of up-to-date licensing. 
  2. Keep It Local- It’s best to find a local lender, if possible. Local lenders have better local market knowledge, and since they’re closer, you can close on property deals faster. 
  3. Review the Requirements and Terms-  Of course, you’ll want to thoroughly understand your loan terms and conditions. Determine how long it’ll take to get financing, how much interest you’ll have to pay, and how long you have to repay the loan. 

Contact a Maryland Hard Money Lender Today


If you want to learn more about how to flip houses using hard money loans, contact a local lender. Whether it’s your first real estate purchase or your hundredth, our Maryland hard money lenders can help bring your investment goals to life. 

Our team of licensed hard money lenders can help fund your investment and answer any questions you may have throughout the process. So, if you’re looking for financing for your next investment or want to learn more about hard money loans, contact Maryland Hard Money Lenders today.

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