Suitland Rd, Morningside, MD 20746
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.
|Loan Amount:||$52,000 1st Mortgage|
|Value of Subject Property:||$ 120,000|
|Loan to Value:||43%|
|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 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.