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 Type: Purchase
Loan Amount: $200,000 1st Mortgage
Value of Subject Property: $ 310,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 622


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.