PROPERTY:
Spring Rd, NW, Washington, DC 20010
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| 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 |
| Credit Score | 530 |
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.