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.