PROPERTY:

Brooks St, NE, Washington, DC 20019

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to refinance a free and clear investment property to complete renovations   The property was originally purchased for $100K earlier this year and needs $60K in rehab work to finish project.  HMB is doing a full construction draw schedule and only reimbursing the Borrower on completed work.

PROPOSED TERMS:

Loan Type: Refinance
Loan Amount: $80,000 1st Mortgage
Value of Subject Property: $200,000
Loan to Value: 40%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 796


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area with a low LTV.  The LTV is about 40%.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.  The Borrowers entity is owned by his IRA so it can’t personally guarantee the loan.