Akron St, Temple Hills, MD 20748
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $80K. The property needs about $15k-20K in rehab work. The borrower is putting up about $50K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work.
|Loan Amount:||$55,000 1st Mortgage|
|Value of Subject Property:||$150,000|
|Loan to Value:||37%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower will be contributing about $50K into this transaction.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.