Carrington Ct, Capitol Heights, MD 20743
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $50,000 and needs very minimal work (around $15,000 to clean up the place, upgrades kitchen and bathrooms, some painting and finishings). The Borrowers are putting up about $35K+ of their own cash.
|Loan Amount:||$25,000 1st Mortgage|
|Value of Subject Property:||$100,000|
|Loan to Value:||25%|
|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 will be contributing about $35K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.