Livingston Rd, Oxon Hill, MD 20745
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.
|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|
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.