Etna Drive, Upper Marlboro, MDÂ 20774
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.
|Loan Amount:||$130,000 1st Mortgage|
|Value of Subject Property:||$225,000|
|Loan to Value:||57%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Refinance 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 ($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.