PROPERTY:

Narrow Trail Ter, Beltsville, MD 20705

LOAN OVERVIEW:

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

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $130,000 1st Mortgage
Value of Subject Property: $205,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 620

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.