Echodale Ave, Baltimore, MD 21214
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 Amount:||$40,000 1st Mortgage|
|Value of Subject Property:||$ 160,000|
|Loan to Value:||25%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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.