PROPERTY:
Chesapeake Dr, Orchard Beach, MD 21226
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $150,000 and needs minor rehab work (around $10,000 to replace some flooring, kitchen and bathroom upgrades, paint and landscaping). The borrower are putting up about $54K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 680 credit score and experience flipping properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $120,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 680 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower have strong credit, good assets and experience. The borrower will be contributing about $54K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.