PROPERTY:
Tilden Rd, Bladensburg, MD 20710
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value through a short sale for $55K. The property needs only about $35k in rehab work and she plans to resell after its rehabbed.  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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $90,000 1st Mortgage |
| Value of Subject Property: | $160,000 |
| Loan to Value: | 57% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Refinance property |
| Credit Score | 732 |
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.