PROPERTY:

Edson Pl, NE, Washington, DC 20019

DESCRIPTION:

The borrower is requesting a hard money loan to renovate a property she purchased for $105K in cash.  We are doing a loan of $80K with a $50K construction holdback that will only be reimbursed on finished work.  She will get a few thousand dollars upfront to start the construction.  The property will resell for around 225K upon completion.  HMB has done 1 successful deal with this borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $80,000 1st Mortgage
Value of Subject Property: $225,000
Loan to Value: 35%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 641

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property in a good area.  The Borrower is strong with experience and assets.

The cons are:

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