PROPERTY:

Shelby Drive, Oxon Hill, MD 20745

LOAN OVERVIEW:

The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $92,000. The borrower is putting up about $36K of their own cash plus fronting the construction costs. The property  needs about $25K in work for new kitchen, baths, floors, painting and landscaping.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $95,000 1st Mortgage
Value of Subject Property: $150,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 740


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property. The borrower will be contributing about 36K+ 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.