Landover Road, Cheverly, MD 20875
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $100,000 and needs rehab work (around $10,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $50K+ of their own cash plus fronting the 1st construction draw.
|Loan Amount:||$70,000 1st Mortgage|
|Value of Subject Property:||$ 145,000|
|Loan to Value:||48%|
|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 minimal construction needed. The Borrower will be contributing about $50K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.