PROPERTY:

Robert Small Rd, Annapolis, MD 21401

LOAN OVERVIEW:

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 wholsaler and needs rehab work (around $65,000 to replace flooring,  kitchen and bathroom upgrades, windows & exterior work, fixing an addition, paint and landscaping). The borrower has experience flipping properties. We have done 10+ successful transactions with this borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $210,000 1st Mortgage
Value of Subject Property: $3250,000
Loan to Value: 64%
Term requested: 12 Month Balloon
Exit Strategy: Resell property
Credit Score 580


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area with recently sales activiy.   The borrower had a lot of experience and 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.