PROPERTY:
Chesley Ave, Baltimore, MD 21234
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $85K and the property needs about $40k in rehab work. We will hold all construction funds in escrow and will reimburse in draws for completed work. The borrower will be bringing about $35K to closing.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $105,000 1st Mortgage |
| Value of Subject Property: | $170,000 |
| Loan to Value: | 62% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 680 mid |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The Borrower has experience, cash and credit.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.