Lazy Day Lane, Bowie, MD 20721


The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $140K from a bank. The property needs about $20k in rehab work. The borrower is putting up about $38K+ 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 4 successful deals with this borrower.


Loan Type: Purchase
Loan Amount: $140,000 1st Mortgage
Value of Subject Property: $210,000
Loan to Value: 66%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 752


The pros are:

The lender will have good collateral on an investment property in a good area. The borrower will be contributing about $38K 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.