24th Street, SE, Washington, DC 20020
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $56,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $10K+ of their own cash plus covering construction expenses. The borrower is strong with a 700+ credit score and experience flipping properties.
|Loan Amount:||$56,000 1st Mortgage|
|Value of Subject Property:||$150,000|
|Loan to Value:||38%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $10K+ into this deal plus construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.