33rd Street, NE, Washington, DC 20019
The borrower 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 $75,000 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower are putting up about $30K+ of their own cash plus fronting the 1st construction draw.
|Loan Amount:||$90,000 1st Mortgage|
|Value of Subject Property:||$ 150,000|
|Loan to Value:||60%|
|Term requested:||6 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 borrower will be contributing about $30K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.