PROPERTY:
Kilimanjaro Rd, Columbia, MD 21045
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $158K. The property needs about $35k in rehab work. The borrower is putting up about $36K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $180,000 1st Mortgage |
| Value of Subject Property: | $270,000 |
| Loan to Value: | 66% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 687 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Howard County. The borrower will be contributing about $36KÂ 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.