29th St., Mount Rainier, MD 20712
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $100,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $18K+ of their own cash. The property needs $80K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
$180,000 1st Mortgage
|Value of Subject Property:||$280,000|
|Loan to Value:||64%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
|May 30, 2011
HARD MONEY Bankers COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $18K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.