PROPERTY:
Prospect Pl, Glenn Dale, MD 20769
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $293,000 and needs rehab work (around $40,000 for kitchen and bathroom upgrades, flooring, paint and landscaping). The borrower is putting up about $110K+ of their own cash plus fronting the 1st construction draw. The borrower has a 645 credit score and experience flipping properties. HMB has done 2 successful deals with this borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $250,000 1st Mortgage |
| Value of Subject Property: | $400,000 |
| Loan to Value: | 63% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 645 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with $40K of construction needed. The borrowers have ok credit, good assets ($150K) and experience. The Borrowers will be contributing about $110K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.