PROPERTY:

Suitland Rd, Morningside, MD 20746

LOAN OVERVIEW:

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 $68,000 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $57K+ of their own cash plus covering the first construction draw. The borrower has a lower credit score of 508 but has good cash and experience flipping properties.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $52,000 1st Mortgage
Value of Subject Property: $ 120,000
Loan to Value: 43%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 508


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property where the Borrower will be contributing about $58K+ into this deal plus construction costs.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.