Georgia Ave, NW, Washington, DC 20011


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


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


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.