PROPERTY:

Langner Court, Fort Washington, MD 20744

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $161,000 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $52K+ of their own cash plus fronting the 1st construction draw.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $160,000 1st Mortgage
Value of Subject Property: $300,000
Loan to Value: 53%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 600


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 $52K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.