Woodyard Road, Clinton, MD 20735
Brookland Road, Glenn Dale, MD 20769


The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $115,000 and needs rehab work (around $32,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $8K+ of their own cash plus allowing us to collateralize in 1st position a free and clear property worth $165K that was recently purchased in cash and completed renovated already.  The Borrower is also fronting the construction cost and will be reimbursed on finished work only.


Loan Type: Purchase
Loan Amount: $165,000 1st Mortgage
Value of Subject Property: $350,000
Loan to Value: 47%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 550


The pros are:

The lender will have good collateral on two investment properties with $32K of work needed.  One of the investment properties is currently free and clear and fully renovated about to hit the market for sale.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.