PROPERTY:
Park Road, NW, Washington, DC 20010
LOAN OVERVIEW:
The borrower is requesting a hard money loan to refinance a 5 unit apartment building. The property was purchased in 1997 for $305,000 and is currently generating $7,125 in monthly rents. The property is in a good area of NW DC.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $525,000 1st Mortgage |
| Value of Subject Property: | $850,000 |
| Loan to Value: | 62% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Refinance property |
| Credit Score | 700 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with no construction needed. The borrower has strong credit and experience. The property is currently getting $7,125 a month in rental income
The cons are:
The Borrowers exit strategy of refinancing could take longer than expected in this market.