PROPERTY:
Decatur St, NE, Washington, DC 20011
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $200,000 1st Mortgage |
| Value of Subject Property: | $310,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 622 |
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.