8th Street, N, Arlington, VA 22201


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.


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


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.