Decatur St, NE, Washington, DC 20011
The Borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a destressed seller for $172,000 (about $20K less than what most investors are paying for properties in that area) and needs rehab work (around $30,000 to replace flooring, kitchen and bathroom upgrades, plumbing, paint and landscaping). The Borrower is putting up about 22K+ cash plus fronting the 1st construction draw. The Borrower is strong with available cash, experience flipping properties and decent credit (622). We have done 2 successful deals with this Borrower.
|Loan Amount:||$200,000 1st Mortgage|
|Value of Subject Property:||$310,000|
|Loan to Value:||65%|
|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 $30,000 construction needed. The Borrower has ok credit, good assets and experience. The Borrower will be contributing about $22K+ into this deal.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market.