PROPERTY:

Brooks St, NE, Washington, DC 20019

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to refinance a free and clear investment property to complete some remaining upgrades.   The property was originally purchased just under 2 years ago for $105,000 and the Borrower has be renovating it.  He is almost completely done and short on funds.  Our loan will be for $30,000 which will net him enough money to finish the work and get it on the market to resell asap.

PROPOSED TERMS:

Loan Type: Refinance
Loan Amount: $30,000 1st Mortgage
Value of Subject Property: $200,000
Loan to Value: 15%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 634


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The LTV is about 15%.

The cons are:

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