PROPERTY:

Northwick Rd, Baltimore, MD 21218

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $100,000 1st Mortgage
Value of Subject Property: $155,000
Loan to Value: 65%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 7low


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.