Ridgecroft Road, Baltimore, MD 21206
The borrowers are requesting a hard money loan to refinance an investment property recently purchased in cash for $48,000. The property is in the process of getting rehabbed now and the Borrow needs some liquidity to complete the work. Some of the cash out from this loan will go to reimburse him for work already performed and $30K will be held back in draws to ensure the work getting completed correctly.
|Loan Amount:||$70,000 1st Mortgage|
|Value of Subject Property:||$ 140,000|
|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 that was purchased in cash. The borrowers have satisfactory credit and experience flipping properties.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.