Eustice Rd, Randallstown, MD 21133
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.
|Loan Amount:||$145,000 1st Mortgage|
|Value of Subject Property:||$ 240,000|
|Loan to Value:||60%|
|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 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.