Good Luck Rd, Lanham, MD 20706
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $140,000 and needs little rehab work (around $10,000 for kitchen and bathroom upgrades, paint and landscaping). The borrower are putting up about $32K+ plus fronting the 1st construction draw. The borrower has a 553 credit score, experience flipping properties and cash. HMB has done 1 successful deal with this borrower.
|Loan Amount:||$135,000 1st Mortgage|
|Value of Subject Property:||$220,000|
|Loan to Value:||61%|
|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 with minimal construction needed. The borrower has lower credit but good assets and experience. The borrower will be contributing about $32K+ into this deal.
The cons are:
The borrowers exit strategy of selling could take longer than expected in this market.