Savannah Pl SE, Washington, DC 20020
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. 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.
|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|
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.