1st Street, S, Arlington, VA 22204
LOAN OVERVIEW:
The borrower is requesting a hard money loan to purchase an investment property in Arlington, VA. The property is under contract for $323,000 and needs about $20K work (updated kitchen, bathrooms, carpet, paint and landscaping). The loan amount is $250,000 and the Borrower will be contributing about $94K at closing + the costs of upgrades. HMB has already done over 8 successful transactions with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $250,000 1st Mortgage |
| Value of Subject Property: | $450,000 |
| Loan to Value: | 56% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 724 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower has a lot of liquid cash, good credit and a lot of experience flipping properties. She will be bringing over $94K to the table for closing.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.