Village Lane, Ocean City, MD 21842
The borrower is requesting a hard money loan to purchase a property in Ocean City. It only needs about $5,000 of work to get it back into rental shape. They will be holding onto the property as rental. The purchase price is $215,000 and they will be putting up about $140K cash at closing.
|Loan Amount:||$100,000 1st Mortgage|
|Value of Subject Property:||$220,000|
|Loan to Value:||45%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Repay in cash|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a property that the Borrower is contributing 55% of her money.
The cons are:
The Borrowers exit strategy of paying off in cash might take longer than expected. She also has lower credit which is why they are bringing so much cash to the table.