PROPERTY:
Dilston Rd, Silver Spring, MD 20903
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $136,000 (+15K for a wholesale fee) and the property needs about $35k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $32K to closing and the seller is holding a $30K 2nd mtg.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $140,000 1st Mortgage |
| Value of Subject Property: | $260,000 |
| Loan to Value: | 54% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | low |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The Borrower has experience and located a very strong deal in today’s competitive market.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.