Kerwin Road, Silver Spring, MD 20901
This is a joint venture with a repeat borrower to acquire and rehab an investment property. The property is being purchased under market value from a distressed seller for $185,000 (which is about 20% lower than most investors) and needs rehab work (around $60,000 to replace carpet, kitchen and bathroom upgrades, new siding, roof, paint and landscaping).Â The borrower is strong with a 700+credit score, experience flipping properties and 15-20k cash into this project.Â We have done 4 successful transactions with this Borrower.
|Loan Amount:||$245,000 1st Mortgage|
|Value of Subject Property:||$ 375,000|
|Loan to Value:||65.3%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. Â Plus, HMB will be actively involved with the construction work being done.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market.