Woodwick Ct, Ellicott City, MD 21042
The borrower is requesting a hard money loan to purchase a bank owned property in a good area of Ellicott City for $265,000. . The property needs about $27K in work ( update kitchen, bathrooms, exterior work, carpet, paint and landscaping). The loan amount is $290,000 with a full construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$25K at closing + starting the construction with their own money. HMB has already done over 8 successful transactions with this borrower.
|Loan Amount:||$270,000 1st Mortgage|
|Value of Subject Property:||$425,000|
|Loan to Value:||64%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with only about $27K of construction needed. The borrower will be contributing about $25K into this deal. HMB has done 8 other successful deals with this Borrower.
The cons are:
The borrowers exit strategy of selling could take longer than expected in this market.