Westbrook Drive, New Carrollton, MD 20784
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $110K. The property needs about $25k in rehab work and should take 3-5 months to rehab and resell. The borrower is putting up about $39K+ 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 1 other successful transaction with this Borrower.
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||55%|
|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 . The borrower will be contributing a lot of cash ($39K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.