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.