PROPERTY:

Dorset Drive, Waldorf, MD 20602

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $80,000 and needs minimal rehab work (around $10,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $17K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 749 credit score and experience flipping properties. HMB has done 1 successful deal with the Borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $85,000 1st Mortgage
Value of Subject Property: $130,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 749


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $17K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.