PROPERTY:
Sheridan Street, NW, Washington, DC 20011
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| 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 |
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.