PROPERTY:
S. Street, SE, Washington, DC 20020
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $110,000 1st Mortgage |
| Value of Subject Property: | $ 190,000 |
| Loan to Value: | 58% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 782 |
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.