PROPERTY:

Mavista Ave, Baltimore, MD 21222

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $77,000 and the property needs about $35,000 in construction which will be held in escrow and reimburse for completed work. HMB has done over a dozen successful deals with this borrower so far. The borrower is bringing $11K+ to closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $110,000 1st Mortgage
Value of Subject Property: $175,000
Loan to Value: 65%
Term requested: 12 Month Balloon
Exit Strategy: Resell property
Credit Score 652

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property. The borrower is strong with good credit, assets, experience and other free and clear properties.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.