PROPERTY:
Linwood Ave, Bel Air, MD 21014
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $125,000 and the property only needs about $35k in upgrades. The borrower purchased several properties from the same seller (bank) and got a very good deal on it.  We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $17K to closing.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $164,000 1st Mortgage |
| Value of Subject Property: | $275,000 |
| Loan to Value: | 60% |
| Term requested: | 12 Month Balloon |
| Credit Score | 664 |
| Exit Strategy: | Refinance property |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low LTV. The Borrower is strong with experience and assets.
The cons are:
The Borrowers exit strategy of refinancing could take longer than expected and will most likely need 6 months of seasoning.