PROPERTY:
Livingston Rd, Oxon Hill, MD 20745
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $135,000 and the property on needs about $10k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $52K to closing.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $105,000 1st Mortgage |
| Value of Subject Property: | $175,000 |
| Loan to Value: | 62% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Refinance to rent |
| Credit Score | 663 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The Borrower has some experience but strong assets.
The cons are:
The Borrowers exit strategy of refinancing may not work so they understand that selling will be their back up option.