PROPERTY:
9th Street, NW, Washington, DC 20011
LOAN OVERVIEW:
The borrower is requesting a hard money loan to pay off his sister on an investment property they own together. The property is in a very good area of NW DC with a current value (as is) of $275K and an ARV of $450K+. The loan we are doing is for $125K which will give the Borrower enough money to payoff his sister and payoff outstanding utility bills on the property.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $125,000 1st Mortgage |
| Value of Subject Property: | $$275K (AS IS), $450K (ARV) |
| Loan to Value: | 28% |
| Term requested: | 6 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property or get loan to pay us off |
| Credit Score | low |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral at a low ltv on an investment property.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market. Borrower has low credit.