L Street, SE, Washington, DC 20003
The borrower is requesting a hard money loan to purchase a discounted property he picked up for $259,000 from an auction sale. The property only needs $25K worth of work to update kitchen, baths, flooring, painting and landscaping. The borrower is a full time rehabber with experience, cash and good credit. The property is in a good area of SE, DC. The borrower will be bringing $54K to closing plus paying for all construction costs.
|Loan Amount:||$225,000 1st Mortgage|
|Value of Subject Property:||$425,000|
|Loan to Value:||53%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower has good credit, experience and cash.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.