Palamar Turn, Lanham, MD 20706
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $119,000 and needs minimal rehab work (around $20,000 to replace carpet, kitchen and bathroom upgrades, some minor drywall work, paint and landscaping). The borrower is putting up about $30K+ of their own cash. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done 10+ success deals with this borrower.
|Loan Amount:||$100,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||50% ARV (70% AS IS)|
|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 borrower has strong credit, good assets and experience. The borrower will be contributing about $30K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.