PROPERTY:
Alexander Ave, Catonsville, MD 21228
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $125,000 1st Mortgage |
| Value of Subject Property: | $ 220,000 |
| Loan to Value: | 64% |
| Term requested: | 9 Month Balloon |
| Investor return: | 58% |
| Exit Strategy: | Resell property |
| Credit Score | low |
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.