Treasure Ave, Walkersville, MD 21793
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $77,000 and needs minimal rehab work (around $13,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $25K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 710 credit score and experience flipping properties.
|Loan Amount:||$75,000 1st Mortgage|
|Value of Subject Property:||$ 115,000|
|Loan to Value:||65%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has strong credit, good assets and experience. The Borrowers will be contributing about $25K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.