PROPERTY:

E Burke, Towson, MD 21286

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value  for $116,000 and needs rehab work (around $35,000 to replace flooring, kitchen and bathroom upgrades, some dry wall work, paint and landscaping). The borrowers are putting up about $28K cash plus fronting the 1st construction draw. The borrowers are strong with a mid 700+ credit score and experience flipping properties.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $140,000 1st Mortgage
Value of Subject Property: $210,000
Loan to Value: 66%
Term requested: 12 Month Balloon
Exit Strategy: Resell property
Credit Score mid 700’s


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrower have strong credit, good assets and experience. The borrower will be contributing about $28k into this deal.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.