Robert Small Rd, 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 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.
|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|
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.