Balfour Drive, Hyattsville, MD 20782
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.
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$ 200,000|
|Loan to Value:||55%|
|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 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.