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.