Mozart Dr, Silver Spring, MD 20904
The Borrower is requesting a hard money loan to acquire an investment property in a good area of Montgomery County. The property is being purchased under market value for $172,000 and needs rehab work (around $15,000 for kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $40K+ of their own cash plus fronting the 1st construction draw.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$250,000|
|Loan to Value:||65%|
|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 with about $15K construction needed. The Borrower has good assets, a 670 credit score and experience. The Borrower will be contributing about $40K+ into this deal.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market.