Edson Pl, NE, Washington, DC 20019
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.
|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|
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.