Sheridan Street, NW, Washington, DC 20011
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value through a short sale for $175,000 (about $20K less that what most investors are paying for properties in that area) and needs rehab work (around $30,000 to replace flooring, kitchen and bathroom upgrades, plumbing, paint and landscaping). The Borrower is putting up about 24K+ cash plus fronting the 1st construction draw. The borrower is strong with a 622 credit score, cash and experience flipping properties. We have 1 successful deal with this Borrower.
|Loan Amount:||$200,000 1st Mortgage|
|Value of Subject Property:||$ 310,000|
|Loan to Value:||65%|
|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 $30,000 construction needed. The borrowers has ok credit, good assets and experience. The Borrowers will be contributing about $24K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.