6th St, NE, Washington, DC 20017
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.
|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|
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.