PROPERTY:
Alabama Ave SE, Washington, DC 20020
LOAN OVERVIEW:
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.
PROPOSED TERMS:
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 |
HARD MONEY BANKERS COMMENTS:
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.