PROPERTY:
Linhigh Ave, Baltimore, MD 21236
DESCRIPTION:
The borrower is requesting a hard money loan to refinance an investment property he just purchased in cash for $100,000. The property needs about $60k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $125,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 63% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 700 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The Borrower is strong with good credit, assets, experience and other free and clear properties.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.