1st Street, S, Arlington, VA 22204
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.
|Loan Amount:||$250,000 1st Mortgage|
|Value of Subject Property:||$450,000|
|Loan to Value:||56%|
|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 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.