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 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


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.