PROPERTY:

Fairford Way, Capitol Heights, MD 20743

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $60,000 1st Mortgage
Value of Subject Property: $ 110,000
Loan to Value: 55%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score lower


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.