Tilden Rd, Bladensburg, MD 20710
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market valueÂ through a short sale for $55K. The property needs only about $35k in rehab work and she plans to resell after its rehabbed. Â The borrower is putting up about 15K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work. HMB has done 4 other successful transaction with this Borrower.
|Loan Amount:||$90,000 1st Mortgage|
|Value of Subject Property:||$160,000|
|Loan to Value:||57%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Refinance property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributing a lot of cash ($15K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of reselling could take longer than expected in this market.