PROPERTY:

18th St, NE, Washington, DC 20002

LOAN OVERVIEW:

The borrower is requesting a hard money loan to purchase a discounted property he picked up at auction sale for $349,000. The property only needs a little work to update kitchen, baths, flooring, painting and landscaping. The borrower is a full time rehabber with experience, cash and good credit. The property is in a good area of NW, DC. The borrower will be bringing $56K+ to closing. HMB has done 8 successful deals with this borrower already.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $315,000 1st Mortgage
Value of Subject Property: $550,000
Loan to Value: 57%
Term requested: 12 Month Balloon
Exit Strategy: Resell property
Credit Score 727


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area. The borrower has good credit, experience and cash.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.