W St, NW, Washington, DC 20009
The borrower is requesting a hard money loan to purchase a property in a great area of NW, Washington, DC that we be converted into 4 condo units. All units will be about 1,000 sq ft, 2 beds and 2 bathrooms. There are many other conversion active and sold in this area and street as well as a smaller complex next door. The purchase price is $1,150,000 and $750K in construction costs. All construction costs will be in escrow and only reimbursed on completed work. The borrower has completed other similar projects to this.
Exit Strategy:Refinance property
|Loan Amount:||$1,600,000 1st Mortgage|
|Value of Subject Property:||$2,600,000|
|Loan to Value:||62%|
|Term requested:||12 Month Balloon|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area of DC. HMB will be doing a construction escrow for the full amount of $750,000.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.