Fairford Way, Capitol Heights, MD 20743
The borrowers are requesting a hard money loan to acquire an investment property under marketing value. The Borrower has already rehabbed and resold 2 properties in that exact same subdivision for over $110K each. He is buying this auction property for $52,500 and needs rehab work (around $25,000 to replace carpet, drywall repiars, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $28K+ cash plus fronting the 1st construction draw. HMB has done 3 other successful deals with this Borrower.
|Loan Amount:||$60,000 1st Mortgage|
|Value of Subject Property:||$ 110,000|
|Loan to Value:||55%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property purchased a good price. The borrower has done several other flips in this area and HMB has done 3 successful deals with him this year. He will be bringing $28K+ cash to closing.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.