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.