PROPERTY:
Neal St, NE, Washington, DC 20002
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $360,000 and the property needs about $30k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $72K to closing. We have done 1 other successful deal with this borrower. This borrower recently rehabbed and resold a similar property 1 block way last month for $550K.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $330,000 1st Mortgage |
| Value of Subject Property: | $550,000 |
| Loan to Value: | 60% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 723 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower is strong with experience, credit and assets.
The cons are:
The borrower’s exit strategy of selling could take longer than expected.