Washington Blvd, Baltimore, MD 21230
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.
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$180,000|
|Loan to Value:||61%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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.