PROPERTY:

Linhigh Ave, Baltimore, MD 21236

DESCRIPTION:

The borrower is requesting a hard money loan to refinance an investment property he just purchased in cash for $100,000.  The property needs about $60k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $125,000 1st Mortgage
Value of Subject Property: $200,000
Loan to Value: 63%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is strong with good credit, assets, experience and other free and clear properties.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.