Browns Ln, Fort Washington, MD 20744
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $120,000 and the property only needs about $20k in upgrades. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $45K to closing.
Exit Strategy:Resell property
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$175,000|
|Loan to Value:||63%|
|Term:||9 Month Balloon|
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 selling could take longer than expected in this market.