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.