Woodyard Road, Clinton, MD 20735
Brookland Road, Glenn Dale, MD 20769
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $115,000 and needs rehab work (around $32,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $8K+ of their own cash plus allowing us to collateralize in 1st position a free and clear property worth $165K that was recently purchased in cash and completed renovated already. The Borrower is also fronting the construction cost and will be reimbursed on finished work only.
|Loan Amount:||$165,000 1st Mortgage|
|Value of Subject Property:||$350,000|
|Loan to Value:||47%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on two investment properties with $32K of work needed. One of the investment properties is currently free and clear and fully renovated about to hit the market for sale.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.