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.