Girard Place NE, Washington, DC 20018
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $111,500. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $39K+ of their own cash. The property needs $180K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
Loan Type: Purchase
Loan Amount: $280,000
Value of Subject Property: $435,000
Loan to Value: 64%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Closing Date: September 7, 2011
Credit Score: 684
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $39K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.