PROPERTY:
East Mill Ave, Capitol Heights, MD 20743
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $90K that was a short sale. The property needs about $5-10k in work to do some minor updates in order to put renter inside.  The borrower is putting up about $40+K+ of her own cash plus doing the min construction work out of pocket.   HMB has done 3 other successful transaction with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $60,000 1st Mortgage |
| Value of Subject Property: | $110,000 “as is” |
| Loan to Value: | 55% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 700 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributing a lot of cash ($40K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of refinacing could take longer than expected in this market.