Melling Lane, Bowie, MD 20715
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $180,000 and needs minimal rehab work (around $15,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $40K+ of their own cash. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done 8 success deals with this borrower
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$300,000|
|Loan to Value:||53%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $40K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.