PROPERTY:
Franklin St, NE, Washington, DC 20018
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $250K. The property needs only about $35k in rehab work. The borrower is putting up about 28K+ of her own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work. HMB has done several other successful transaction with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $280,000 1st Mortgage |
| Value of Subject Property: | $430,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell |
| Credit Score | 732 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributing cash ($28K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of could take longer than expected in this market.