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