PROPERTY:
Smith Village Court, Silver Spring, MD 20904
LOAN OVERVIEW:
The borrower is requesting a hard money loan to refinance an investment property that is currently vacant. The property is owned by her and her mom but she is using the money to buy out her mom and get funds to rehab the property. This property needs about 30K-40K rehab work to replace some flooring, patch some drywall and paint, kitchen and bathroom upgrades, fixtures and landscaping).
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $195,000 1st Mortgage |
| Value of Subject Property: | $365,000 |
| Loan to Value: | 53% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 607 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area with a full construction rehab reserve.
The cons are:
Ideally the Borrower would like to refinance (once its rented out) but is ok to sell.