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.