PROPERTY:

Piney Branch Rd, Silver Spring, MD 20910

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value from a distressed seller for $215,000 and needs a full rehab job. The Borrowers are putting up about $33K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $339,000 1st Mortgage
Value of Subject Property: $ 550,000
Loan to Value: 64%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 684


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $31K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.