York Lane, Bowie, MD 20715
The borrower is requesting a hard money loan to purchase a short sale in Bowie for $142,000. The property needs about $22K in work ( update kitchen, bathroom, carpet, paint and landscaping). The loan amount is $160,000 with a full construction hold back that will only be reimbursed on finished work. The borrower will be contributing ~$18K at closing + starting the construction with their own money. HMB has already done over 5 successful transactions with this Borrower
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$ 250,000|
|Loan to Value:||65%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with only about $20K of construction needed.The borrower will be contributing about $18K into this deal. HMB has done 5 other successful deals with this Borrower.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.