Bishops Lane, Catonsville, MD 21228
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $95,000 and needs rehab work (around $35,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping).Â The Borrowers are putting up about $15K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 680 credit score and experience flipping properties.
|Loan Amount:||$135,000 1st Mortgage|
|Value of Subject Property:||$ 210,000|
|Loan to Value:||64%|
|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 $15K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.