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.