PROPERTY:

47th Street, NE, Washington, DC 20019

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $65,000 and needs rehab work (around $25,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $11K+ of their own cash plus covering construction expenses. The borrower is strong with a 700+ credit score and experience flipping properties.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $65,000 1st Mortgage
Value of Subject Property: $ 130,000
Loan to Value: 50%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $11K+ into this deal plus construction costs.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.