PROPERTY:
8th St, NE, Washington, DC 20017
LOAN OVERVIEW:
The borrower is requesting a hard money loan to purchase a discounted property he picked up for $240,000. The property only needs $20K worth of work to update kitchen, baths, flooring, painting and landscaping. The borrower is a full time rehabber with experience, cash and good credit. The property is in a good area of NE, DC. The borrower will be bringing $42K+ to closing. HMB will be doing a full construction holdback. HMB has done 6 successful deals with this borrower already.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $235,000 1st Mortgage |
| Value of Subject Property: | $360,000 |
| Loan to Value: | 65% |
| Term requested: | 12 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 727 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower has good credit, experience and cash.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.