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.