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.