Columbus Street, Arlington, VA 22206
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $220,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $25K+ of their own cash. The property needs $45K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
Loan Type: Purchase
Loan Amount: $265,000
Value of Subject Property: $410,000
Loan to Value: 65%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score: 684
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $25K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.