Morton St, NE, Washington, DC 20002
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.
|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|
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.