PROPERTY:
White Oak Rd, Leonardtown, MD 20650
Larches Ct, Morningside, MD Â 20746
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $92K from a bank.  The property needs about $35k in rehab work. The exit price on this subject property is $235K.   HMB will be doing a full construction holdback. The borrower has experience, cash and 761 credit score.  The borrower just purchased another property on Larches Ct for $60,000 cash that we can collateralize as 1st lien.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $140,000 1st Mortgage |
| Value of Subject Property: | $235,000 (subject property only) |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 761 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on two investment properties. The borrower has experience flipping properties, good credit and cash. We are able to cross-collateralize a free and clear property.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.