PROPERTY:

Purlington Way, Baltimore, MD 21212

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $307,500 and the property needs about $60k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  HMB has done 10+ successful deals with this borrower so far.  The borrower is bringing $60K+ to closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $340,000 1st Mortgage
Value of Subject Property: $520,000
Loan to Value: 65%
Term requested: 9 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.