Shoreside Trl, Pasadena, MD 21122
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $700,000. The property is currently very nicely renovated but was poorly designed and needs about $40K to redo some features including dividing the upper floor into 2 bedrooms with 1 full bath instead of 1 open living area. The Borrowers are contributing $300K plus closing costs.
|Loan Amount:||$400,000 1st Mortgage|
|Value of Subject Property:||$725,000|
|Loan to Value:||55%|
|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 minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $335K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.