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.