Norfolk Ave, Laurel, MD 20723
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.
|Loan Amount:||$140,000 1st Mortgage|
|Value of Subject Property:||$225,000|
|Loan to Value:||62%|
|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 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.