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 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


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.