White Oak Rd, Leonardtown, MD 20650
Larches Ct, Morningside, MD 20746
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.
|Loan Amount:||$140,000 1st Mortgage|
|Value of Subject Property:||$235,000 (subject property only)|
|Loan to Value:||60%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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.