PROPERTY:
L Street, SE, Washington, DC 20003
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| 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 |
| Credit Score | 727 |
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.