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.