Chesapeake Dr, Orchard Beach, MD 21226
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $150,000 and needs minor rehab work (around $10,000 to replace some flooring, kitchen and bathroom upgrades, paint and landscaping). The borrower are putting up about $54K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 680 credit score and experience flipping properties.
|Loan Amount:||$120,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||60%|
|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 with minimal construction needed. The borrower have strong credit, good assets and experience. The borrower will be contributing about $54K+ into this deal.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.