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.Â All units will be about 850 sq ft, 2 beds and 1 bathroom.Â There are many other conversion active and sold in this hot area currently.Â Investors are able to maximize their returns by converting into multiple units instead of keeping as rentals.Â Â The purchase price is $290,000 and $100K in construction costs.Â 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. Â 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.