Lorton Ave, Capitol Heights, MD 20743
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $110K. The property needs only about $25k in rehab work and he plans to flip it for around $200K. The borrower is putting up about 39K+ cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work. HMB has done one other successful transaction with this borrower.
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$175,000|
|Loan to Value:||63%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributing cash ($39K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of could take longer than expected in this market.