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 Type: Refinance
Loan Amount: $1,150,000 1st Mortgage
Value of Subject Property: $1,900,000
Loan to Value: 61%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 750


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.