Venango Rd, Ft Washington, MD 20744
The borrower are requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $140,000 and needs rehab work (around $30,000 to replace floor, new kitchen and bathroom, paint, new roof and landscaping). The borrower is coming to the table with about $62K+ plus fronting the 1st construction draw. The borrower has low credit which is why we reduced the ltv to 50% and required more cash to close.
|Loan Amount:||$250,000 1st Mortgage|
|Value of Subject Property:||$125,000|
|Loan to Value:||50%|
|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 in a stable area of PG county. The borrower will be contributing about $62K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.