Bradley Lane, Columbia, MD 21044
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as an estate sale for $215,000 and needs rehab work (around $30,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $36K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 700 credit score and experience flipping properties.
|Loan Amount:||$235,000 1st Mortgage|
|Value of Subject Property:||$360,000|
|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 borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $36K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.