PROPERTY:
Ames St, NE, Washington, DC 20007
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $100,000 1st Mortgage |
| Value of Subject Property: | $ 200,000 |
| Loan to Value: | 50% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | low |
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.