PROPERTY:
Balfour Drive, Hyattsville, MD 20782
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value at auction for $145,000 and needs minimal rehab work (around $10,000 to replace carpet, make a few repairs, paint and landscaping). The Borrowers are putting up about $51K+ of their own cash plus covering construction costs. The borrower is strong with a 650 credit score and experience flipping properties.
PROPOSED TERMS:
Loan Type: | Purchase |
Loan Amount: | $110,000 1st Mortgage |
Value of Subject Property: | $ 200,000 |
Loan to Value: | 55% |
Term requested: | 9 Month Balloon |
Investor return: | 12% |
Exit Strategy: | Resell property |
Credit Score | 650 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have average credit, good assets and experience. The Borrowers will be contributing about $51K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.