Otis Pl, NW, Washington, DC 20010
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $545,000 and the property needs about $100k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The borrower will be bringing about $110K+ to closing. This property is in a hot area of Columbia Heights and some very similar properties have sold for over $1 mill.
|Loan Amount:||$580,000 1st Mortgage|
|Value of Subject Property:||$950,000|
|Loan to Value:||61%|
|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 and assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.