Fisher Drive, Temple Hills, MD 20748
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $66K. The property needs about $50k in rehab work. The borrower is putting up about $23K+ 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 loans for this Borrower.
|Loan Amount:||$105,000 1st Mortgage|
|Value of Subject Property:||$165,000|
|Loan to Value:||65%|
|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. The borrower will be contributing about $23K into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.