Vandiver Ct, Havre De Grace, MD 21078
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.
|Loan Amount:||$75,000 1st Mortgage|
|Value of Subject Property:||$125,000|
|Loan to Value:||60%|
|Term requested:||12 Month Balloon|
|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.