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.   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.