PROPERTY:
Carrington Ct, Capitol Heights, MD 20743
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $25,000 1st Mortgage |
| Value of Subject Property: | $100,000 |
| Loan to Value: | 25% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | low |
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.