PROPERTY:

Chinkapin Ct, Rockville, MD 20850

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property currently belongs to his ex-wife and through their divorce the judge allowed the Borrower to get the equity in the property.  Upon purchasing the property for $925K (from the ex-wife) he will immediately put the property on the market for around $1,200,000 for resale. The property is in a great area of Rockville and needs no construction work. The Borrower will need to bring about $290K to the table for our deal.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $700,000 1st Mortgage
Value of Subject Property: $1,100,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 651


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrower as ok credit, good assets and income.   The borrower will be contributing about $290K+ into this deal.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.