9th Street, NW, Washington, DC 20011
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $195,000 and needs rehab work (around $70,000 to replace floor, new kitchen and bathroom, paint, new roof and landscaping). The Borrowers are putting up about $68K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 700+ credit score and experience flipping properties.
|Loan Amount:||$220,000 1st Mortgage|
|Value of Subject Property:||$ 340,000|
|Loan to Value:||65%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of NW, DC. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $68K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.