Potomac Ave, SE, Washington, DC 20003
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $315,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $35K of their own cash plus fronting the construction costs. The property needs $85K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
|Loan Amount:||$400,000 1st Mortgage|
|Value of Subject Property:||$ 575,000|
|Loan to Value:||70%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $35K+ into this deal plus 1st phase of construction money.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.