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.