Prout St, SE, Washington, DC 20020
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value as a short sale for $134,500 and needs rehab work (around $30,000 to replace carpet, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $70K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 670 credit score and experience flipping properties.
|Loan Amount:||$105,000 1st Mortgage|
|Value of Subject Property:||$190,000|
|Loan to Value:||55%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrowers has ok credit, good assets and experience. The Borrowers will be contributing about $70K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.