Brierdale Ln, Bowie, MD 20715
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $183,000 which is a great price. The property needs minimal rehab work (around $30,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The borrower is putting up about $44K+ of their own cash. The borrower is strong with a 787 credit score and experience flipping properties. HMB has done 10 success deals with this borrower.
|Loan Amount:||$155,000 1st Mortgage|
|Value of Subject Property:||$325,000 ARV, $230 “As is”|
|Loan to Value:||48%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The borrower will be contributing about $44K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.