Alabama Ave SE, Washington, DC 20020


The borrower wants to acquire an investment property. The property is being purchased under market value thru a short sale for $160K. The borrower has a lot of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $53K of their own cash plus fronting the construction costs. The property needs $30K in work which the borrower will pay for out of pocket. The borrower is strong with a 702 credit score, experience flipping properties and money in the bank.  HMB has done several successful loans for this Borrower so far.


Credit Score

Loan Type: Purchase
Loan Amount: $120,000 1st Mortgage
Value of Subject Property: $250,000 ARV
Loan to Value: 48%
Term requested: 12 Month Balloon
Credit Score 702
Exit Strategy: Resell property


The pros are:

We will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $50K+ into this deal.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.