PROPERTY:
South Meadow Drive, Glen Burnie, MD 21060
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $140,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The borrower is putting up about $41K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 808 credit score and experience flipping properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $140,000 1st Mortgage |
| Value of Subject Property: | $ 215,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 808 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has strong credit, good assets and experience. The borrower will be contributing about $41K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.