PROPERTY:

Messina Drive, Fort Washington, MD 20744

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $95,000 and needs rehab work (around $15,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $22K+ of their own cash plus doing all construction work out of pocket which we will then reimburse them on completed work.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $100,000 1st Mortgage
Value of Subject Property: $1800,000
Loan to Value: 56%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 550


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 $22K+ into this deal.

The cons are:

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