PROPERTY:

Akron St, Temple Hills, MD 20748

DESCRIPTION:

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.

PROPOSED TERMS:

Loan Type: Purchase
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
Credit Score 652

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.