Joyceton Way, Upper Marlboro, MD 20774


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.


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


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.