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.