Woodwick Ct, Ellicott City, MD 21042
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| 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 |
| Credit Score | 620 |
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.