PROPERTY:
Taplow St, Baltimore, MD 21212
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire a discounted investment property. The property is being purchased under market value for $295,000 and needs rehab work (around $51,000 for a new kitchen and 2 bathroom upgrades, paint and redo some flooring). The Borrower is putting up about $145K+ of their own cash. The borrower is strong with a 750 credit score and experience flipping properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $235,000 1st Mortgage |
| Value of Subject Property: | $500,000 |
| Loan to Value: | 47% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 750 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a very good area of Baltimore. The borrower have strong credit, good assets and experience. The Borrowers will be contributing about $145K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.