PROPERTY:
Jameson St, Temple Hills, MD 20748
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $99,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $36K and fronting the 1st construction draw. Â The borrower is strong with a 733 credit score and experience flipping properties. HMB is doing a construction hold back for the full $25K construction reserve.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $100,000 1st Mortgage |
| Value of Subject Property: | $ 180,000 |
| Loan to Value: | 56% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 733 |
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 Borrowers will be contributing about $36K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.