Waterloo Rd, Columbia, MD 21045 &
Cassell Blvd, Prince Frederick, MD 20678
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.
|Loan Amount:||$320,000 1st Mortgage|
|Value of Subject Property:||$645,000 (360 + 285)|
|Loan to Value:||50%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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.