PROPERTY:

Coolridge Rd, Temple Hills, MD 20748

LOAN OVERVIEW:

The borrower wants to acquire an investment property. The property is being purchased under market value through a short sale for $130K. The borrower has a lot of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $40K of their own cash plus fronting the construction costs. The property needs $30K in work. The borrower is strong with a 702 credit score, experience flipping properties and money in the bank.

PROPOSED TERMS:

Credit Score

Loan Type: Purchase
Loan Amount: $135,000 1st Mortgage
Value of Subject Property: $225,000
Loan to Value: 60%
Term requested: 12 Month Balloon
Credit Score 702
Exit Strategy: Resell property


HARD MONEY BANKERS COMMENTS:

The pros are:

We will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $40K+ into this deal plus 1st phase of construction money.

The cons are:

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