PROPERTY:

Sydney Ave, 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 $108,000 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 $34K+ 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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $85,000 1st Mortgage
Value of Subject Property: $160,000
Loan to Value: 54% ARV (75% AS IS)
Term requested: 12 Month Balloon
Investor return: 12%
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 $34K+ into this project.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.