PROPERTY:
6th St, NE, Washington, DC 20017
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to refinance an investment property. The property was originally purchased and then rehabbed. It is currently being rented out for $2,000 per month. The tenants lease is up and planning to move out in January. Since the property is in nice condition it will only need about $5,000 in order to get it listed and sold.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $175,000 1st Mortgage |
| Value of Subject Property: | $400,000 |
| Loan to Value: | 44% |
| Term requested: | 6 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 536 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with little construction needed at a low LTV.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.