PROPERTY:
8th Street, N, Arlington, VA 22201
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $450,000 and needs rehab work (around $75,000 to update property including adding 600 more sq footage, replacing flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $80K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 680 credit score and experience flipping properties. HMB has already done several successful transactions with this Borrower.
PROPOSED TERMS:
Loan Type: | Purchase |
Loan Amount: | $490,000 1st Mortgage |
Value of Subject Property: | $800,000 |
Loan to Value: | 61% |
Term requested: | 9 Month Balloon |
Investor return: | 12% |
Exit Strategy: | Resell property |
Credit Score | 680 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a good area. The borrower is strong credit, good assets and experience. The Borrower will be contributing about $80K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.