PROPERTY:
Etna Drive, Upper Marlboro, MDÂ 20774
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $168K. The property needs only about $10k in rehab work and she plans to hold as a rental property. The borrower is putting up about $67K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work. HMB has done 3 other successful transaction with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $130,000 1st Mortgage |
| Value of Subject Property: | $225,000 |
| Loan to Value: | 57% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Refinance property |
| Credit Score | 732 |
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 ($67K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of refinancing could take longer than expected in this market.