PROPERTY:
2nd Street, NE, Washington, DC 20002
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $162,000 and needs rehab work (around $30,000 to replace flooring, kitchen and bathroom upgrades, plumbing, paint and landscaping). The Borrower is putting up about $40K+ cash plus fronting the 1st construction draw. The borrower is strong with a 622 credit score, cash and experience flipping properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $170,000 1st Mortgage |
| Value of Subject Property: | $ 260,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 622 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with $30,000 construction needed. The borrowers has ok credit, good assets and experience. The Borrowers will be contributing about $40K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.