PROPERTY:
Brisbane Ct, Silver Spring, MD 20902
LOAN OVERVIEW:
The Borrower is requesting a hard money loan to acquire an investment property in a good area of Montgomery County. The property is being purchased under market value for $215,000 and needs rehab work (around $40,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $40K+ of their own cash plus fronting the 1st construction draw.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $240,000 1st Mortgage |
| Value of Subject Property: | $400,000 ($460K BPO) |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | n/a per report |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with about $40K construction needed. The Borrower has good assets and experience. The Borrower will be contributing about $40K+ into this deal.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market. Â They have had credit issues in the past and currently all tradelines are closed.