PROPERTY:

Texas Ave, SE, Washington, DC 20020

LOAN OVERVIEW:

The borrower is requesting a hard money loan to refinance an investment property.  The property was purchased in 2005 for $410,000 .  It is currently rented out for $1,800 per month.  The cash out is going towards improvements to the property.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $125,000 1st Mortgage
Value of Subject Property: $290,000
Loan to Value: 43%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 598


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment rental property bringing in over $1,800 per month.  The property is in a good area of SE DC with a lot of equity.

The cons are:

The borrower’s exit strategy could take longer than expected in this market.