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.