North Capitol Street, NE, Washington, DC 20002
The borrowers are requesting a hard money loan to acquire a 3 unit commercial property. The current zoning allows the units to be used for commercial use of residential use. The property is being purchased way under market value through a short sale. The short sale was approved at $210,000 which is well below market value. The property is vacant and needs about $5-10K . The borrower has a 656 credit score and will be bringing about $35,000 to closing.
|Loan Amount:||$190,000 1st Mortgage|
|Value of Subject Property:||$ 350,000 ($428K BPO)|
|Loan to Value:||55%|
|Term requested:||6 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a valuable commercial property with minimal construction needed. The Borrower will be contributing about $35K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market although he currently has several interested buyers.