Brooks St, NE, Washington, DC 20019
The borrowers are requesting a hard money loan to refinance a free and clear investment property to complete renovations Â The property was originally purchased for $100K earlier this year and needs $60K in rehab work to finish project.Â HMB is doing a full construction draw schedule and only reimbursing the Borrower on completed work.
|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|
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.Â The LTV is about 40%.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.Â The Borrowers entity is owned by his IRA so it can’t personally guarantee the loan.