Chatham Lane, Annapolis, MD 21403
This is a joint venture with a repeat borrower to acquire and rehab an investment property. The property is being purchased under market value from a seller that has moved out of the home and out of state for $155,000 (which is about 15-20% lower than most investor purchases in that area) and needs rehab work (around $55,000 to replace carpet, kitchen and bathroom upgrades, some drywall replacing, some mold remediation in the basement, paint and landscaping). The borrower is strong with a 700+credit score, experience flipping properties and 15-20k cash into this project. We have done 4 successful transactions with this Borrower.
|Loan Amount:||$210,000 1st Mortgage|
|Value of Subject Property:||$ 325,000|
|Loan to Value:||65%|
|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 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.