Gordon St, N, Alexandria, VA 22304
The borrowers are requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $280,000 and needs rehab work (around $50,000 to update property and replace flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $75K+ 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 Amount:||$280,000 1st Mortgage|
|Value of Subject Property:||$425,000|
|Loan to Value:||65%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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 $75K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.