9th Street, NW, Washington, DC 20011
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.
|Loan Amount:||$125,000 1st Mortgage|
|Value of Subject Property:||$$275K (AS IS), $450K (ARV)|
|Loan to Value:||28%|
|Term requested:||6 Month Balloon|
|Exit Strategy:||Resell property or get loan to pay us off|
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.