PROPERTY:
100th Ave, Lanham, MD 20706
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $130,000 and needs rehab work (around $30,000 for kitchen and bathroom upgrades, paint, drywall and landscaping). The borrower is putting up about $21K+ plus fronting the 1st construction draw. The borrower has a 650 credit score, experience flipping properties and cash.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $155,000 1st Mortgage |
| Value of Subject Property: | $250,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 650 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with $30K in construction. The borrower has lower credit but good assets and experience. The borrower will be contributing about $21K+ into this deal.
The cons are:
The borrowers exit strategy of selling could take longer than expected in this market.