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.