Spring Rd, NW, Washington, DC 20010
The borrower is requesting a hard money loan to refinance an investment property he just inherited. The property has a lot of equity with a small current mortgage. The loan of $180K will pay off the current mortgage and be used to renovated the property. The house needs about $60K in construction to get it ready to list. HMB will be doing a construction holdback.
|Loan Amount:||$180,000 1st Mortgage|
|Value of Subject Property:||$500,000|
|Loan to Value:||36%|
|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 a ton of equity and about $60K of construction needed.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.