PROPERTY:
60th Ave, Bladensburg, MD 20710
DESCRIPTION:
The borrower is requesting a hard money loan on a property that was just purchased for $105K cash. The use of proceeds will be to contribute to the construction on this property (work is currently getting completed) and to purchase another property. We will holdback $25K for construction and reimburse on completed work.
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $80,000 1st Mortgage |
| Value of Subject Property: | $160,000 |
| Loan to Value: | 50% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 641 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The Borrower is strong with experience and assets. HMB has done 1 other successful deal with them.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.