Just got into a new hard money loan today. The borrower is the same person who was the borrower for hard money loan #7. That loan only lasted two months, but this one should be a bit longer - we're guessing 6 months. (The legal document says the loan is for a maximum of 1 year.)
The property was another one bought at a foreclosure auction in the northern California area. We have a first mortgage in the amount of $160,500. Investors are getting 10% interest-only payments paid monthly. The house is a 3/2 SFH that is about 1,250 square feet. It comps in AS-IS condition at $250,000 conservatively or $275,000 non-conservatively. After it is fixed up it, it should be worth somewhere in the $330,000 to $350,000 range. The property does back up to some train tracks, but the comps were used did as well. One comp actually was only on the market for 8 days! The borrower has $90,000 of his own money in it. Using the conservative valuation, our LTV is 64%.
The old owners, who were foreclosed on, are still occupying the property, so the borrower will need to go through the eviction process to get them out. (This is one reason why we're pretty sure this loan will last longer than 2 months.)