PROPERTY:
Underwood st, Lanham, MD 20706
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $130,000 1st Mortgage |
| Value of Subject Property: | $210,000 |
| Loan to Value: | 62% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Refinance property |
| Credit Score | 657 |
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.