PROPERTY:

Beachcraft Ct, Temple Hills, MD 20748

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $145,000 and the property needs about $30k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  The borrower has good credit and cash.  She will need about $61K at closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $130,000 1st Mortgage
Value of Subject Property: $220,000
Loan to Value: 59%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 791

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 cash assets.

The cons are:

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