PROPERTY:
Kerwin Road, Silver Spring, MD 20901
LOAN OVERVIEW:
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). The borrower is strong with a 700+credit score, experience flipping properties and 15-20k cash into this project. We have done 4 successful transactions with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $245,000 1st Mortgage |
| Value of Subject Property: | $ 375,000 |
| Loan to Value: | 65.3% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 700+ |
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.