Private Lending with Real Estate as Collateral

Real estate is often used as collateral for private mortgage loans in Maryland (private loans are loans not involving banks / credit unions). Recent legislation has restricted this to:


  1. Family members for residential loans
  2. All others but strictly for business purposes, properly documented


Real estate loans for investment / rehab properties aka hard money lending have become more common in Maryland. These can be difficult unless handled properly. Seek help from experienced counsel before proceeding.