Dilston Rd, Silver Spring, MD 20903
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $136,000 (+15K for a wholesale fee) and the property needs about $35k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $32K to closing and the seller is holding a $30K 2nd mtg.
|Loan Amount:||$140,000 1st Mortgage|
|Value of Subject Property:||$260,000|
|Loan to Value:||54%|
|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 has experience and located a very strong deal in today’s competitive market.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.