Trinidad Ave, NE, Washington, DC 20002
The borrower is requesting a hard money loan to purchase 4 unit vacant apartment building in Washington, DC that we be converted into 4 condo units. All units will be about 850 sq ft, 2 beds and 1 bathroom. There are many other conversion active and sold in this hot area currently. Investors are able to maximize their returns by converting into multiple units instead of keeping as rentals. The purchase price is $290,000 and $100K in construction costs. All construction costs will be in escrow and only reimbursed on completed work.
|Loan Amount:||$350,000 1st Mortgage|
|Value of Subject Property:||$450,000|
|Loan to Value:||64%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Sell individual condos|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a hot area of DC. HMB will be doing a construction escrow for the full amount of $100,000.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.