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.