Chesapeake Dr, Havre De Grace, MD 21078
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $112,000 and the property needs about $55k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. HMB has done over a dozen successful deals with this borrower so far. The borrower is bringing $20K+ to closing.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$250,000|
|Loan to Value:||64%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower is strong with good credit, assets, experience and other free and clear properties.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.