Silverbirch Lane, Laurel, MD 20708
The borrower is requesting a hard money loan to purchase a bank owned property in Laurel for $166,000. The property needs about $20K in work (new kitchen, bathroom, carpet, paint and landscaping). The loan amount is $175,000 with a full construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$24K at closing. HMB has already done over 3 successful transactions with this Borrower
|Loan Amount:||$175,000 1st Mortgage|
|Value of Subject Property:||$ 275,000|
|Loan to Value:||65%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with only about $20K of construction needed.The borrower will be contributing about $24K into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.