PROPERTY:
Prout St, SE, Washington, DC 20020
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a short sale for $134,500 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $70K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 670 credit score and experience flipping properties.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $105,000 1st Mortgage |
| Value of Subject Property: | $190,000 |
| Loan to Value: | 55% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 690 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers has ok credit, good assets and experience. The Borrowers will be contributing about $70K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.