PROPERTY:

Girard Place NE, Washington, DC  20018

LOAN OVERVIEW:

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.

PROPOSED TERMS:

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.