Northwick Rd, Baltimore, MD 21218
This is a joint venture with a repeat borrower to acquire and rehab an investment property. The property is being purchased under market value through a short sale and needs rehab work (around $45,000 to replace carpet, kitchen and bathroom upgrades, drywall, windows & exterior work, paint and landscaping). The borrower has a lot of experience flipping properties. We have done 10 successful transactions with this borrower.
|Loan Amount:||$100,000 1st Mortgage|
|Value of Subject Property:||$155,000|
|Loan to Value:||65%|
|Term requested:||12 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 stable area. HMB will be actively involved with the construction work being done.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market.