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.