PROPERTY:

Otis Pl, NW, Washington, DC 20010

DESCRIPTION:

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.

PROPOSED TERMS:

Loan Type: Purchase
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
Credit Score 646

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.