PROPERTY:

Meadowview Ave, Windsor Mill, MD 21244

DESCRIPTION:

The borrower is requesting a hard money loan to refinance a free and  clear  investment property they are building.  The land was purchased with cash in 05′ for $35,000 and in June this year they started building a 3,000 sq ft colonial home on it.  They have spent about $150,000 in construction so far and need another $100,000 to complete.  The property has a full structure, with siding, windows, roof and 2 car garage that is completely framed out.  The money is going to finalize rough ins, drywall and interior. HMB will hold $60,000 of construction funds in escrow and will reimburse for completed work.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $120,000 1st Mortgage
Value of Subject Property: $300,000
Loan to Value: 40%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 634

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area. The borrower has already contributed $150,000 into this transaction and has experience flipping properties.

The cons are:

The borrowers exit strategy of selling could take longer than expected in this market.