PROPERTY:
Echodale Ave, Baltimore, MD 21214
LOAN OVERVIEW:
The borrower are requesting a hard money loan to refinance a free and clear investment property that he purchased a few months ago and rehabbed. The Borrower listed the property for $240,00 renovated and got feedback from potential buyers that he should have a finished basement. The $40,000 cash out is going to finish the basement and he will re list for $240,000.
| Loan Type: | Purchase |
| Loan Amount: | $40,000 1st Mortgage |
| Value of Subject Property: | $ 160,000 |
| Loan to Value: | 25% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | low |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has already contributed $100K.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.