Maple Ave, Bowie, MD 20720
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $50,000 and needs rehab work (around $80,000 to completely renovate). The Borrowers are putting up about $30K+ of their own cash plus fronting the 1st construction draw. The borrower has a 599 credit score and experience flipping properties.
|Loan Amount:||$115,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||58%|
|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 in a stable area of Bowie, MD . The borrowers have ok credit, good assets and experience. The Borrowers will be contributing about $30K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.