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.