Arcola Ave, Silver Spring, MD 20902
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $275,000 and the property needs about $40k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $100K to closing.
|Loan Amount:||$240,000 1st Mortgage|
|Value of Subject Property:||$365,000|
|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 in a good area. The Borrower is strong with experience and assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.