Garland Ave, Takoma Park, MD 20912
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value from a distressed owner for $305,000 and needs $60,000 in renovations. The Borrowers are putting up about $90K+ of their own cash plus fronting construction. The borrowers have done 5 other successful deals with us and have strong financials.
|Loan Amount:||$300,000 1st Mortgage|
|Value of Subject Property:||$460,000|
|Loan to Value:||65%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
|Credit Score||614 borrower, 762 co-borrower|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Montgomery County. The borrowers have good credit, good assets and experience. The Borrowers will be contributing about $90K+ into this deal plus fronting construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.