Shelby Drive, Oxon Hill, MD 20745
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 propertyÂ needs about $25K in work for new kitchen, baths, floors, painting and landscaping.
|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|
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.