Franklin St, NW, Washington, DC 20001
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market valueÂ for $230K. The property needs only about $45k in rehab work and she plans to resell upon completion. Â The borrower is putting up about 23K+ 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.
|Loan Amount:||$275,000 1st Mortgage|
|Value of Subject Property:||$425,000|
|Loan to Value:||65%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Sell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributingÂ cash ($23K) into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy could take longer than expected in this market.