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.