PROPERTY:
Summerfield Ct, Joppa, MD 21085
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $120,000 and the property needs about $50k in rehab work. We will hold $35,000 construction funds in escrow and will reimburse for completed work. HMB has done over a dozen successful deals with this borrower so far. The borrower is bringing $17K+ to closing.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $150,000 1st Mortgage |
| Value of Subject Property: | $230,000 |
| Loan to Value: | 65% |
| Term requested: | 12 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 652 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower is strong with good credit, assets, experience and other free and clear properties.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.