PROPERTY:
44th Pl, SE, 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 from a bank for $142,000 through a short sale. The property needs $40K in work.  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.
PROPOSED TERMS:
Credit Score
| Loan Type: | Purchase |
| Loan Amount: | $160,000 1st Mortgage |
| Value of Subject Property: | $250,000 |
| Loan to Value: | 64% |
| Term requested: | 9 Month Balloon |
| Credit Score | 702 |
| 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.