PROPERTY:

Thomas Jefferson Ter, Elkton, MD 21921

DESCRIPTION:

The borrower is requesting a hard money loan to purchase a rental property.   The purchase price is $305,000 and the property needs no work.    The borrower will be bringing about $166K to closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $155,000 1st Mortgage
Value of Subject Property: $305,000
Loan to Value: 52%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Repay in cash
Credit Score 647

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is bringing a lot of cash to close.

The cons are:

The Borrowers exit strategy of selling could take longer than expected but the equity position is great based off the large amount of cash contributed.