6th St, NE, Washington, DC 20017
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.
|Loan Amount:||$102,000 1st Mortgage|
|Value of Subject Property:||$250,000|
|Loan to Value:||41%|
|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 no construction needed at a low LTV.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.