Philadelphia Rd, Abingdon, MD 21009
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value from their parents estate for about $120k (which is about 50% of what the market value is). The Borrowers are bringing about $10K to the closing table. The property doesn’t really need much work and will be rented out for $2,000. The intended exist strategy is to refinance our loan with the understanding that they will sell if necessary.
|Loan Amount:||$130,000 1st Mortgage|
|Value of Subject Property:||$ 250,000|
|Loan to Value:||52%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low LTV.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.