PROPERTY:

York Lane, Bowie, MD 20715

LOAN OVERVIEW:

The borrower is requesting a hard money loan to purchase a short sale in Bowie for $142,000. The property needs about $22K in work ( update kitchen, bathroom, carpet, paint and landscaping). The loan amount is $160,000 with a full construction hold back that will only be  reimbursed on finished work. The borrower will be contributing ~$18K at closing + starting the construction with their own money. HMB has already done over 5 successful transactions with this Borrower

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $160,000 1st Mortgage
Value of Subject Property: $ 250,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 620

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with only about $20K of construction needed.The borrower will be contributing about $18K into this deal. HMB has done 5 other successful deals with this Borrower.

The cons are:

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