PROPERTY:

Eustice Rd, Randallstown, MD 21133

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $150,000 and needs rehab work (around $40,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The borrower is putting up about $60K+ of their own cash plus fronting the 1st construction draw. The borrower has OK credit of 630 and experience flipping properties.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $145,000 1st Mortgage
Value of Subject Property: $ 240,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 690


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrower has good assets and experience. The borrower will be contributing about $60K+ into this deal.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.