PROPERTY:
Garland Ave, Takoma Park, MD 20912
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value from a distressed owner for $305,000 and needs $60,000 in renovations. Â The Borrowers are putting up about $90K+ of their own cash plus fronting construction. The borrowers have done 5 other successful deals with us and have strong financials.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $300,000 1st Mortgage |
| Value of Subject Property: | $460,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 614 borrower, 762 co-borrower |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of Montgomery County. The borrowers have good credit, good assets and experience. The Borrowers will be contributing about $90K+ into this deal plus fronting construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.