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.