PROPERTY:
Tanglewood Drive, Waldorf, MD 20601
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $85,000 1st Mortgage |
| Value of Subject Property: | $135,000 |
| Loan to Value: | 63% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 790 |
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.