PROPERTY:
Dunlap St, Temple Hills, MD 20748
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a short sale for $41,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades, basement finishes, paint and landscaping). The Borrower is putting up about $30K+ of their own cash plus fronting the first construction draw.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $50,000 1st Mortgage |
| Value of Subject Property: | $150,000 |
| Loan to Value: | 33% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 563 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with $25K construction needed. The borrower will be contributing about $30K+ into this deal plus construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.