35th Street, NE, Washington, DC 20019
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $75,000 and needs about $50,000 to rehab it. The Borrower is putting up around $28K+ cash . The borrower is strong with a 700+ credit score, experience flipping properties and money in the bank. HMB has already done many successful transactions with this Borrower. HMB will be holding $50,000 of the construction costs back at closing and only reimbursing funds on finished work. The borrower will be prepaying the first 3 months of payments through the loan at closing.
|Loan Amount:||$125,000 1st Mortgage|
|Value of Subject Property:||$200,000.|
|Loan to Value:||63%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with $50K construction needed in a hot area of DC . The borrower has strong credit, good assets and experience. The Borrower will be contributing about $28K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.