PROPERTY:
Heath St, Capitol Heights, MD 20743
Darlene Dr, Clinton, MD 20735
DESCRIPTION:
The borrower is requesting a hard money loan to refinance 2 single family rental properties. Both have very small existing mortgages that will be paid off. Cash out will go towards some renovations for these properties and 2 other properties she owns. Our loan amount is $80K on a combined as is value of $250K.
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $80,000 1st Mortgage |
| Value of Subject Property: | $250,000 |
| Loan to Value: | 32% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Payoff through sale of another property |
| Credit Score | 563 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on 2 investment properties
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.