PROPERTY:

31st Ave, Temple Hills, MD 20748

LOAN OVERVIEW:

The Borrower is requesting a hard money loan to acquire an investment property with minimal rehab needed. The property is being purchased under market value  for $95,000 and needs rehab work (around $15,000 for kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $15K+ of their own cash plus fronting the 1st construction draw.  HMB has done 2 other successful deals for this Borrower including one down the street from this one that sold for $180K.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $110,000 1st Mortgage
Value of Subject Property: $170,000
Loan to Value: 65%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with about $15K construction needed. The Borrower has good assets, a 688 credit score and experience.  The Borrower will be contributing about $15K+ into this deal.

The cons are:

The Borrower’s exit strategy of selling could take longer than expected in this market.