PROPERTY:

Mt Auburn Drive, Clinton, MD 20735

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $190,000 and needs rehab work (around $25,000 to minor repairs, upgrades, paint and landscaping). The borrower is putting up about $78K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 794 credit score and experience flipping properties.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $155,000 1st Mortgage
Value of Subject Property: $260,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 794


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrower has strong credit, good assets and experience. The borrower will be contributing about $78K+ into this deal.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.