PROPERTY:
29th St., Mount Rainier, MDÂ 20712
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $100,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $18K+ of their own cash. The property needs $80K in work. 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:
Loan Amount: |
Purchase
$180,000 1st Mortgage |
| Value of Subject Property: | $280,000 |
| Loan to Value: | 64% |
| Term requested: | 12Â Month Balloon |
| Investor return: | 12% |
| Additional Info: | |
| Exit Strategy: | Resell property |
| Closing Date:
Credit Score |
May 30, 2011
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 $18K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.