Dartmouth Rd, Waldorf ,MD 20602
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.
|Loan Amount:||$135,000 1st Mortgage|
|Value of Subject Property:||$225,000|
|Loan to Value:||60%|
|Term requested:||9 Month Balloon|
|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.