PROPERTY:
Shoreside Trl, Pasadena, MD 21122
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $400,000 1st Mortgage |
| Value of Subject Property: | $725,000 |
| Loan to Value: | 55% |
| Term requested: | 9 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 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.