PROPERTY:
Vandiver Ct, Havre De Grace, MD 21078
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $60,000 and the property only needs about $15k in upgrades. The borrower purchased this property through an auction sale at a discount and is holding as a rental property. It 2 units which rent for $850 each. HMB is holding all construction money until upgrades are completed. HMB has done 2 successful projects already with this borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $75,000 1st Mortgage |
| Value of Subject Property: | $125,000 |
| Loan to Value: | 60% |
| Term requested: | 12 Month Balloon |
| Credit Score | 664 |
| Exit Strategy: | Refinance property |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low LTV. The Borrower is strong with experience and assets. He has refinanced loans into bank loans in the past that are held as rentals.
The cons are:
The Borrowers exit strategy of refinancing could take longer than expected and will most likely need 6-9 months of seasoning.