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 Type: Purchase
Loan Amount: $60,000 1st Mortgage
Value of Subject Property: $110,000 “as is”
Loan to Value: 55%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700


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.