N. Chester St, Baltimore, MD 21231
The borrower is requesting a hard money loan to purchase and renovate a property the they recently picked up through a short sale. The purchase price is $150,000 and the property needs about $35k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower is bringing $21K+ to closing.
|Loan Amount:||$180,000 1st Mortgage|
|Value of Subject Property:||$280,000|
|Loan to Value:||65%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower is strong with good credit, assets, experience and other free and clear properties.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.