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 in May for $125K and then rehabbed out of pocket in cash. The property is in nice livable condition and the Borrower is in the process of renting it out for $1,800 per month.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $102,000 1st Mortgage |
| Value of Subject Property: | $250,000 |
| Loan to Value: | 41% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 590 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with no construction needed at a low LTV.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.