PROPERTY:
Prospect Hill Rd, Glenn Dale, MD 20769
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $125,000. The borrower is putting up about $38K of their own cash plus fronting the construction costs. The property needs about $50K in work for new kitchen, baths, floors, painting and landscaping.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $150,000 1st Mortgage |
| Value of Subject Property: | $250,000 |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 644 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower will be contributing about 42K+ into this deal plus fronting construction money.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market. The borrower has poor credit but 70K in the bank and contributing 38K+ into this transaction.