PROPERTY:
Scott Key Drive, District Heights, MD 20747
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $107,000 and needs 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 $37K+ of their own cash. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done 12+ success deals with this borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $80,000 1st Mortgage |
| Value of Subject Property: | $180,000 |
| Loan to Value: | 44% ARV (75% purchase price) |
| Term requested: | 12 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 700+ |
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 $37K+ into this project.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.