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.