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.