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.