9th Street, NW, Washington, DC 20011
The loan is for a refinance of an existing hard money loan done on the property. The borrower originally purchased in late 2012 in the mid $200k’s (which was an excellent price). His plan was evict the tenants an renovate the property. The tenants have been paying rent and the borrower agreed to let them live there for another 6 months in which he will then rehab the property and resell. Petworth area has been increasing rapidly in value. We have done 8 successful deals with this borrower.
|Loan Amount:||$250,000 1st Mortgage|
|Value of Subject Property:||$500,000 (50% off ARV and 63% off ‘as is’ value)|
|Loan to Value:||50%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Sell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.