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 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


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.