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.