Bock Rd, Fort Washington, MD20744
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $160K. The property needs only about $25k in rehab work and he plans to flip it for around $250K. The borrower is putting up about 42K+ cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work. HMB has done two other successful transaction with this borrower.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$240,000|
|Loan to Value:||66%|
|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 cash ($42K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of could take longer than expected in this market.