PROPERTY:
Georgia Ave, NW, Washington, DC 20011
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property. The purchase price is $380,000 and the property needs about $90k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work. The subject property is in a hot area of Petworth in DC. The borrower is bringing $40K cash to close and the seller is doing a $65K seller carry back. HMB has done 1 other successful deal with this borrower
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $400,000 1st Mortgage |
| Value of Subject Property: | $600,000 |
| Loan to Value: | 66% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 712 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower is strong with experience and assets.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.