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 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


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.