Munroe Ct, Annapolis, MD 21401
This is a joint venture with a repeat borrower to acquire and rehab an investment property. The property is being purchased under market value through a short sale and needs rehab work (around $60,000 to replace carpet, kitchen and bathroom upgrades, finishing the basement, paint and landscaping). The borrower is strong with a 700+credit score and experience flipping properties. We have done 6 successful transactions with this borrower.
|Loan Amount:||$275,000 1st Mortgage|
|Value of Subject Property:||$415,000|
|Loan to Value:||66%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Annapolis. The borrowers have strong credit, good assets and experience. Plus, HMB will be actively involved with the construction work being done.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market.