PROPERTY:
Browns Ln, Fort Washington, MD 20744
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $120,000 and the property only needs about $20k in upgrades. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $45K to closing.
PROPOSED TERMS:
Exit Strategy:Resell property
| Loan Type: | Purchase |
| Loan Amount: | $110,000 1st Mortgage |
| Value of Subject Property: | $175,000 |
| Loan to Value: | 63% |
| Term: | 9 Month Balloon |
| Credit Score | 705 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low LTV. The Borrower is strong with experience and assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.