PROPERTY:
Norfolk Ave, Laurel, MD 20723
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $150K from a bank. The property needs about $35k in rehab work. The borrower is putting up about $60K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $140,000 1st Mortgage |
| Value of Subject Property: | $225,000 |
| Loan to Value: | 62% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 687 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower will be contributing about $60K into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.