Meadowview Ave, Windsor Mill, MD 21244
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.
|Loan Amount:||$120,000 1st Mortgage|
|Value of Subject Property:||$300,000|
|Loan to Value:||40%|
|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 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.