Alexander Ave, Catonsville, MD 21228
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value from a distressed owner for $125K and needs rehab work (around $15,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $30K+ of their own cash plus fronting the 1st construction draw. HMB has done 4 successful transactions with this Borrower.
|Loan Amount:||$125,000 1st Mortgage|
|Value of Subject Property:||$ 220,000|
|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 construction needed. HMB has done 4 successful transactions with this Borrower who will be contributing about $30K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.