PROPERTY:
Morton St, NE, Washington, DC 20002
LOAN OVERVIEW:
The borrower is requesting a hard money loan to purchase a discounted 2 unit property he picked up for $325,000 at an auction. The property needs very little work to put back on the market. The borrower is a full time rehabber with experience, cash and good credit. The property is in a good area of NE, DC. The borrower will be bringing $60K+ to closing plus paying for all construction costs. HMB has done 5 successful deals with this borrower already.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $290,000 1st Mortgage |
| Value of Subject Property: | $600,000 |
| Loan to Value: | 50% |
| 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.