E Burke, Towson, MD 21286
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.
|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.