P. Street, SW, Washington, DC 20024
A borrower is requesting a hard money loan from Hard Money Bankers to acquire and rehab an investment property. The property is being purchased under market value from a distressed seller for $170,000 and needs rehab work (around $40,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrower is putting up about $65K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 788 credit score and cash.
|Loan Amount:||$160,000 1st Mortgage|
|Value of Subject Property:||$ 250,000|
|Loan to Value:||64%|
|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 with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $65K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.