PROPERTY:
Ravenswood Rd, Riverdale, MD 20737
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $104,000 and the property needs about $20k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $15K to closing. We have done 3 other successful deals with this borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $120,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 668 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower is strong with experience, credit and assets.
The cons are:
The borrower’s exit strategy of selling could take longer than expected.