PROPERTY:
Kenilworth Ave, Riverdale, MD 20737
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $130,000 and the property needs about $32k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The co- borrower has 772 credit score and cash. They will be bringing about $56K to closing .
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $120,000 1st Mortgage |
| Value of Subject Property: | $225,000 |
| Loan to Value: | 53% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 772 |
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 good credit and cash assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.