PROPERTY:

Westway Rd, Glen Burnie, MD 21061

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $120,000 and the property needs about $20k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  The co- borrower has 772 credit score and cash.  They will be bringing about $33K to closing .

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $120,000 1st Mortgage
Value of Subject Property: $215,000
Loan to Value: 56%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 772

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is strong with good credit and cash assets.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.