Sandy Beach, Pasadena, MD 21122
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $173,000 and he plans to paint and do minor repairs and put it right back on the market for slightly under market value. The borrower is putting up about $27K+ of his own cash plus covering the minor repair expenses. The borrower is strong with a 712 credit score and experience flipping properties. HMB has done 1 successful project with this borrower.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$250,000 ARV|
|Loan to Value:||64%|
|Term requested:||9 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 repairs. The borrower has strong credit, good assets and experience. The borrower will be contributing about $27K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.