PROPERTY:
Thomas Jefferson Ter, Elkton, MD 21921
DESCRIPTION:
The borrower is requesting a hard money loan to purchase a rental property. Â The purchase price is $305,000 and the property needs no work. Â Â 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.