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 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.


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


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.