PROPERTY:

Halloway Circle, Upper Marlboro, MD 20772

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $161,000 and needs minimal rehab work (around $20,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The borrower is putting up about $44K+ of their own cash. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done 10 success deals with this borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $130,000 1st Mortgage
Value of Subject Property: $225,000
Loan to Value: 58% ARV (70% AS)
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700+


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The borrower will be contributing about $44K+ into this deal.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.