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.