PROPERTY:

33rd Street, NE, Washington, DC 20019

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $90,000 1st Mortgage
Value of Subject Property: $ 150,000
Loan to Value: 60%
Term requested: 6 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score low


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.