PROPERTY:
9th Street, NW, Washington, DC 20011
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $220,000 1st Mortgage |
| Value of Subject Property: | $ 340,000 |
| Loan to Value: | 65% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 700+ |
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.