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.