PROPERTY:
Waterloo Rd, Columbia, MD 21045 &
Cassell Blvd, Prince Frederick, MD 20678
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $236K at an auction sale.  The property needs about $35k in rehab work. The borrower recently purchased another property on Cassell Blvd for $161K on this month in cash that we will collateralize as well as 1st lien. The property needs $15K in work. HMB will do a 50K construction holdback to be used for rehab on both properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $320,000 1st Mortgage |
| Value of Subject Property: | $645,000 (360 + 285) |
| Loan to Value: | 50% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 737 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on two investment properties in good areas. The borrower has experience flipping properties and good credit. Our cross-collateral property was just purchased this month for $161K cash.  He also has 150k in cash reserves.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.