44th Pl, SE, Washington, DC 20019
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value from a bank for $142,000 through a short sale.Â The property needs $40K in work. Â The borrower is putting up about $38K of their own cash plus fronting the construction costs. The borrower is strong with a 702 credit score, experience flipping properties and money in the bank.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$250,000|
|Loan to Value:||64%|
|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. The borrower has strong credit, good assets and experience. The Borrower will be contributing about $38K+ into this deal plus 1st phase of construction money.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.