PROPERTY:

Cheshire Ln, Lanham, MD 20706

DESCRIPTION:

The Borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $154,000 and the property needs about $15k in minor rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  The Borrower will be bringing about $34K to closing. He has good credit, cash and experience.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $150,000 1st Mortgage
Value of Subject Property: $250,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 816

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 experience, credit and assets.

The cons are:

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