Ferndale Ave, Glen Burnie, MD 21061


The borrower is requesting a hard money loan to purchase a bank owned property in Glen Burnie for $96,000. The property needs about $40K in work ( update kitchen, bathrooms, exterior work,  carpet, paint and landscaping). The loan amount is $135,000 with a full construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$15K at closing + starting the construction with their own money. HMB has already done over 7 successful transactions with this borrower.


Loan Type: Purchase
Loan Amount: $135,000 1st Mortgage
Value of Subject Property: $210,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 620


The pros are:

The lender will have good collateral on an investment property with only about $40K of construction needed.The borrower will be contributing about $15K into this deal. HMB has done 7 other successful deals with this Borrower.

The cons are:

The borrowers exit strategy of selling could take longer than expected in this market.