Brooks St, NE, Washington, DC 20019
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.
|Loan Amount:||$30,000 1st Mortgage|
|Value of Subject Property:||$200,000|
|Loan to Value:||15%|
|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 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.