Whether you’re a new investor or a seasoned buyer looking to expand your real estate portfolio, the path to building wealth through rental properties or flips always begins with one critical step: securing the funding. In Maryland’s competitive and diverse market, your ability to finance a deal quickly and smartly can mean the difference between landing a profitable property—or missing the opportunity entirely.
This guide will walk you through multiple strategies to get funding for your Maryland investment property. From understanding your options and getting pre-approved to budgeting wisely and negotiating rates, we’ll also explore how to identify the right property and ensure it fits your investment goals.
1. Know Your Financing Options
The first step is knowing what kinds of funding are available and which is most appropriate for your goals, timeline, and financial position. The most common options include:
Conventional Loans:
Traditional lenders offer mortgage products tailored to investment property purchases, but they typically require:
- Higher down payments (15–25%)
- Strong credit history (usually 700+)
- Cash reserves to cover 6+ months of mortgage payments
Private Money Lenders:
These are individual investors or companies that loan money based on the value of the property rather than your credit score. You’ll likely pay higher interest but benefit from a faster closing.
Hard Money Loans:
Short-term loans often used for fix-and-flip projects. These are asset-based, and lenders focus more on the ARV (After Repair Value) of the property than your income or credit.
Self-Directed IRAs:
You may also consider using your retirement funds to invest in real estate. Check out our article on how to buy Maryland real estate investment properties using your IRA for a full breakdown.
Government-Backed Loans:
FHA and VA loans aren’t typically used for investments, but multi-unit properties (like duplexes or fourplexes) where you live in one unit may qualify.
2. Get Pre-Approved: Know What You Can Afford
Getting pre-approved is essential—it shows sellers you’re serious and lets you move faster when the right property hits the market.
A pre-approval letter from a lender gives you a concrete number to work within and reveals any issues in your credit report or debt-to-income ratio that may need attention.
At Simple Homebuyers, we work with many investors who thought financing was out of reach until they discovered creative strategies that let the numbers speak louder than credit scores. We’ve helped buyers obtain funding even after financial setbacks such as selling a house during foreclosure.
The key? A deal with enough equity, cash flow, and a solid exit plan. These factors are often more important to private or hard money lenders than a FICO score alone.
3. Budget Wisely: Prepare for the Unexpected
New investors often underestimate the total cost of acquiring, renovating, and maintaining a property. A wise investor builds a budget that considers:
- Down payment and closing costs
- Renovation and holding costs
- Vacancy periods
- Emergency repairs (HVAC, plumbing, roofing, etc.)
Don’t rely on ideal numbers. Base your projections on realistic rental income, maintenance costs, and conservative ARV estimates.
If you’re acquiring properties that require probate clearance or estate resolution, make sure to factor in legal delays. Learn more in our guide on selling a house in probate.
4. Negotiate With Confidence
You negotiate the purchase price of a property—but smart investors also negotiate loan terms. This is especially true if you’re working with private money or a partner.
Explain the project’s scope, your timeline, the expected ROI, and how your experience (or your professional team) reduces risk. Seasoned lenders want to fund good deals. The better your numbers and presentation, the better your terms.
And remember: every point off the interest rate or reduction in origination fees means more money in your pocket.
At Simple Homebuyers, our team includes skilled negotiators who can help you prepare packages for lenders and walk you through how to present deals for the best outcome.
5. Choose the Right Property
Getting funding is only half the equation. To succeed in real estate investing, you need to choose the right property.
Key Considerations:
- Location: Look for areas with job growth, population increase, and strong rental demand
- Price-to-Rent Ratio: Lower is generally better
- Condition: Cosmetic issues are fine; structural problems can destroy ROI
- Market Trends: Use tools like Reventure App, Zonda, and also local reports from the Maryland Department of Planning to understand appreciation rates, crime stats, and local school rankings
6. Build Your Power Team
Behind every successful investor is a team:
- Agent or Wholesaler: To find and negotiate deals
- Contractor: To assess and perform renovations
- Property Manager: To handle leasing and tenants
- CPA or Real Estate Attorney: For legal and tax planning
- Lender: For reliable, fast capital
Simple Homebuyers connects investors with our trusted in-house professionals, reducing the guesswork and risk for those new to the game.
7. Be Prepared to Buy As-Is
Many great investment deals come in the form of distressed, outdated, or off-market properties. These homes don’t qualify for traditional loans and often require cash or alternative financing.
If you’re targeting off-market homes or want to compete with other buyers, you’ll likely need to buy the property as-is.
Fortunately, buying as-is doesn’t mean buying blindly. It just means working with a team that knows how to assess the real risks and rewards quickly. We’ll help you calculate the costs and determine if the deal makes sense before you close.
Final Thoughts: Funding Your First (or Next) Deal in Maryland
Real estate investing in Maryland offers incredible upside—but getting the funding can be the most challenging part. By exploring your loan options, budgeting realistically, building a team, and working with professionals who know the local market, you can secure the funding you need to grow your portfolio confidently.
At Simple Homebuyers, we specialize in helping Maryland investors succeed—whether it’s your first property or your tenth. We offer guidance, funding support, and access to our exclusive list of investment properties.
Let us help you take the next step. Reach out today and let’s get you funded.