34th Street, NW, Washington, DC 20007
The borrowers are requesting a hard money loan to refinance an investment property and access funds for construction. The property was originally purchased for $995,000 in April 2011 and the borrowers put in $300k in cash plus about $60K worth of rehab work. Rehab work is going on now and the cash out of this closing will all go into a construction rehab reserve to only be disbursed on completed work. The property is a very desirable 2,400 sq ft above ground attached single family (with a 3750 sq ft lot ) in Georgetown.
|Loan Amount:||$1,150,000 1st Mortgage|
|Value of Subject Property:||$1,900,000|
|Loan to Value:||61%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a great area of DC. The borrowers have strong credit, good assets and experience. The borrowers will be contributing about $20K+ into this refinance at closing plus continuing construction work out of pocket. The borrowers contributed $300K to the purchase of this property one year ago.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.