Ames St, NE, Washington, DC 20007
The borrower are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a bank owned property for $75,000 and needs rehab work (around $50,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower are putting up about $38K+ of their own cash plus fronting the 1st construction draw.
|Loan Amount:||$100,000 1st Mortgage|
|Value of Subject Property:||$ 200,000|
|Loan to Value:||50%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property at a low ltv that needs basic upgrades. The borrower will be contributing about $38K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.