Queenstown RD, Severn, MD 21144
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $168,000 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, some minor drywall work, paint and landscaping). The borrower is putting up about $46K+ of their own cash. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done 10+ success deals with this borrower.
|Loan Amount:||$135,000 1st Mortgage|
|Value of Subject Property:||$280,000|
|Loan to Value:||48% ARV (75% AS IS)|
|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 with minimal construction needed. The borrower has strong credit, good assets and experience. The borrower will be contributing about $46K+ into this project.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.