S. Street, SE, Washington, DC 20020
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased below market value as a short sale for $88,000 and needs rehab work (around $25,000 to replace flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $18K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 782 credit score.
|Loan Amount:||$110,000 1st Mortgage|
|Value of Subject Property:||$ 190,000|
|Loan to Value:||58%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit and good assets. The Borrowers will be contributing about $18K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.