Underwood st, Lanham, MD 20706
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $155,000 and needs rehab work (around $20,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $62K+ of their own cash plus fronting the 1st construction draw. The borrower has a 657 credit score and experience flipping properties.
|Loan Amount:||$130,000 1st Mortgage|
|Value of Subject Property:||$210,000|
|Loan to Value:||62%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Refinance property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have ok credit credit, good assets ($100K) and experience. The Borrowers will be contributing about $62K+ into this deal.
The cons are:
The Borrowers exit strategy of refinancing could take longer than expected in this market.