East Mill Ave, Capitol Heights, MD 20743
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $90K that was a short sale. The property needs about $5-10k in work to do some minor updates in order to put renter inside. The borrower is putting up about $40+K+ of her own cash plus doing the min construction work out of pocket. HMB has done 3 other successful transaction with this Borrower.
|Loan Amount:||$60,000 1st Mortgage|
|Value of Subject Property:||$110,000 “as is”|
|Loan to Value:||55%|
|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 . The borrower will be contributing a lot of cash ($40K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of refinacing could take longer than expected in this market.