Narrow Trail Ter, Beltsville, MD 20705
The borrower is requesting a hard money loan to purchase a bank owned property in Beltsville for $124,000. The property needs about $15K in work ( update kitchen, bathroom, carpet, paint and landscaping). The loan amount is $130,000 with a full construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$23K at closing + starting the construction with their own money. HMB has already done over 6 successful transactions with this Borrower
|Loan Amount:||$130,000 1st Mortgage|
|Value of Subject Property:||$205,000|
|Loan to Value:||65%|
|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 with only about $15K of construction needed.The borrower will be contributing about $23K into this deal. HMB has done 6 other successful deals with this Borrower.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.