PROPERTY:
Venango Rd, Ft Washington, MD 20744
LOAN OVERVIEW:
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+Â 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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $250,000 1st Mortgage |
| Value of Subject Property: | $125,000 |
| Loan to Value: | 50% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| 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.