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.
|Loan Amount:||$120,000 1st Mortgage|
|Value of Subject Property:||$250,000 ARV|
|Loan to Value:||48%|
|Term requested:||12 Month Balloon|
|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.