PROPERTY:

P. Street, SW, Washington, DC 20024

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $160,000 1st Mortgage
Value of Subject Property: $ 250,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 788


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.