Afton St, Temple Hills, MD 20748
The borrower wants to acquire an investment property. The property is being purchased under market value through a short sale for $55,000. The borrower has a lot of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $18K of their own cash plus pay for the construction costs. The property needs very little work. The borrower is strong with a 702 credit score, experience flipping properties and money in the bank. HMB has done several successful loans for this Borrower so far.
|Loan Amount:||$45,000 1st Mortgage|
|Value of Subject Property:||$62,000 ‘as is’ $120,000 ARV|
|Loan to Value:||38%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
We 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.