PROPERTY:
Henderson Way, Suitland, MD 20746
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 HUD owned property for $101,000 and needs rehab work (around $35,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $40K+ of her own cash plus fronting the 1st construction draw.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $110,000 1st Mortgage |
| Value of Subject Property: | $ 200,000 |
| Loan to Value: | 55% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 645 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed.  The Borrower will be contributing about $40K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.