PROPERTY:

Mallory Ter, Gaithersburg, MD 20879

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $200,000 and the property needs about $20k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  The borrower has cash and a 793 credit score.  She will be bringing $43K to closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $200,000 1st Mortgage
Value of Subject Property: $315,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 793

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is strong with good credit and assets

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.