Tanglewood Drive, Waldorf, MD 20601
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned auction property for $92,000 and needs rehab work (around $10,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $29K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 790 credit score and experience flipping properties. HMB has done 1 successful deal with the Borrower.
|Loan Amount:||$85,000 1st Mortgage|
|Value of Subject Property:||$135,000|
|Loan to Value:||63%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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 $29K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.