Sachem Drive, Forest Heights, MD 20745
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $69,000 and needs rehab work (around $10,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $30K+ of their own cash plus fronting the construction money. The borrower has a low credit score but has a lot of experience flipping properties, equity in other properties and cash..
|Loan Amount:||$50,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||30%|
|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 borrowers has good assets and experience. The Borrowers will be contributing about $30K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.