62nd Street, NE, Washington, DC 20019
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 $55,500 and needs rehab work (around $15,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $10K+ of their own cash plus covering construction expenses. The borrower is strong with a 700+ credit score and experience flipping properties. HMB has done a successful transaction with this Borrower.
|Loan Amount:||$55,500 1st Mortgage|
|Value of Subject Property:||$ 130,000|
|Loan to Value:||43%|
|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 with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $10K+ into this deal plus construction costs.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.