Ridge St, NW, Washington, DC 20001
The borrower is requesting a hard money loan to refinance a 2 unit building in a great area of NW, Washington, DC. The property was originally purchased for $190,000 as just land in 2008. After navigating through DC permitting and approval offices as well as getting permission from the local community associations, he started building this 3 story building out of pocket a year ago. He has since run low on funds and needs construction money to finish the work. Our 1st mortgage will pay off the existing 1st mortgage and provide $200K for construction that will only be reimbursed on finished work.
|Loan Amount:||$525,000 1st Mortgage|
|Value of Subject Property:||$900,000|
|Loan to Value:||58%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Refinance property|
|Credit Score||500 and 700 (co-borr)|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of DC worth $900K. HMB will be doing a construction escrow for the full amount + $30K contingency.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.