Dunlap St, Temple Hills, MD 20748
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a short sale for $41,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades,Â basement finishes, paint and landscaping). The Borrower is putting up about $30K+ of their own cash plus fronting the first construction draw.
|Loan Amount:||$50,000 1st Mortgage|
|Value of Subject Property:||$150,000|
|Loan to Value:||33%|
|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 $25K construction needed.Â The borrower will be contributing about $30K+ into this deal plus construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.