PROPERTY:
35th Street, NE, Washington, DC 20019
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| 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 |
| Credit Score | 700+ |
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.