Hammershire Rd, Owings Mills, MD 21117
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 $65,000 and needs rehab work (around $35,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The borrower are putting up about $18K+ of their own cash plus fronting the 1st construction draw. The borrower has a 553 credit score, experience flipping properties and cash.
|Loan Amount:||$95,000 1st Mortgage|
|Value of Subject Property:||$190,000|
|Loan to Value:||50%|
|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 lower creditÂ but good assets and experience. The borrower will be contributing about $18K+ into this deal.
The cons are:
The borrowers exit strategy of selling could take longer than expected in this market.