PROPERTY:
Savannah Pl SE, Washington, DC 20020
DESCRIPTION:
The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $110K. The property needs only about $30k in rehab work and they plan to resell after its rehabbed. Â The borrower is putting up about $25K+ of their own cash plus the fronting construction costs. HMB will hold all construction funds in escrow and will reimburse for completed work.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $130,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Reselling property |
| Credit Score | 756 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property . The borrower will be contributing $25K into this transaction and has experience flipping properties.
The cons are:
The Borrowers exit strategy of reselling could take longer than expected in this market.