Regency Parkway, District Heights, MD 20747
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 $93,000 and needs minimum rehab work (around $10,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $30K+ of their own cash plus fronting the 1st construction draw. The borrower has a 634 credit score and experience flipping properties.
|Loan Amount:||$85,000 1st Mortgage|
|Value of Subject Property:||$150,000|
|Loan to Value:||57%|
|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 has ok credit, good assets ($100K) and experience. The Borrower will be contributing about $29K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.