PROPERTY:
Philadelphia Rd, Abingdon, MD 21009
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $130,000 1st Mortgage |
| Value of Subject Property: | $ 250,000 |
| Loan to Value: | 52% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 664 |
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.