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.