PROPERTY:

Settler Court, Columbia, MD 21044

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $161,000 and needs minimal rehab work (around $15,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $23K+ of their own cash plus fronting construction costs. The borrower is strong with a 700+ credit score and experience flipping properties.  HMB has done 8 success deals with this borrower

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $150,000 1st Mortgage
Value of Subject Property: $ 250,000
Loan to Value: 60%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700+


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 $23K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.