PROPERTY:
Washington Blvd, Baltimore, MD 21230
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property (3 units). The property is being purchased under market value through a short sale for $75,000 and needs rehab work (around $35,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $20K+ of their own cash plus fronting the 1st construction draw. This property is in a desirable area for retail resales and high rental rates.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $110,000 1st Mortgage |
| Value of Subject Property: | $180,000 |
| Loan to Value: | 61% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 668 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a 3 unit investment property in a good area. The Borrower will be contributing about $20K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.