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.