PROPERTY:
Ridge St, NW, Washington, DC 20001
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $525,000 1st Mortgage |
| Value of Subject Property: | $900,000 |
| Loan to Value: | 58% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| 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.