Messina Drive, Fort Washington, MD 20744
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.
|Loan Amount:||$100,000 1st Mortgage|
|Value of Subject Property:||$1800,000|
|Loan to Value:||56%|
|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 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.