PROPERTY:

Dartmouth Rd, Waldorf ,MD 20602

LOAN OVERVIEW:

The Borrower is requesting a hard money loan to acquire an investment property in a  hot area of  Waldorf.  There is a lot of investor activity since prices are fairly low and there is home buyer demand.  The property is being purchased under market value  for $144,000 and needs rehab work (around $15,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $38K+ of their own cash plus fronting the 1st construction draw.  HMB has done 1 successful deal with this Borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $135,000 1st Mortgage
Value of Subject Property: $225,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score n/a per report


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with about $15K construction needed. The Borrower has good assets and experience. The Borrower will be contributing about $38K+ into this deal.

The cons are:

The Borrower’s exit strategy of selling could take longer than expected in this market.  They have had credit issues in the past and currently all tradelines are closed.