PROPERTY:
Rolling Rd, Hagerstown, MD 21742
LOAN OVERVIEW:
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 $141,000 and needs minimal rehab work (around $20,000 to update the house). The Borrowers are putting up about $60K+ of their own cash plus covering construction costs. Â The borrower is strong with a 665 credit score and experience flipping properties.
PROPOSED TERMS:
Loan Type: | Purchase |
Loan Amount: | $90,000 1st Mortgage |
Value of Subject Property: | $ 180,000 |
Loan to Value: | 50% |
Term requested: | 6 Month Balloon |
Investor return: | 12% |
Exit Strategy: | Resell property |
Credit Score | 665 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has strong credit, good assets and experience. The Borrowers will be contributing about $60K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.