PROPERTY:

North Capitol Street, NE, Washington, DC 20002

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $190,000 1st Mortgage
Value of Subject Property: $ 350,000 ($428K BPO)
Loan to Value: 55%
Term requested: 6 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 656


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.