PROPERTY:
Joyceton Way, Upper Marlboro, MD 20774
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $105K. The property needs about $25k in rehab work and should take 3-5 months to rehab and resell. The borrower is putting up about $34K+ 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 1 other successful transaction with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $110,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 55% |
| Term requested: | 9 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 . The borrower will be contributing a lot of cash ($34K) 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.