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. Â They have had credit issues in the past and currently all tradelines are closed.