Kennedy St, Alexandria, VA 22305
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $325,000. The borrower has a a lot of experience flipping properties and does many transactions on a monthly basis. The borrower is putting up about $75K of their own cash plus fronting the construction costs. The property needs $25K in work which HMB will fully escrow. The borrower is strong with a 677 credit score, experience flipping properties and money in the bank. HMB has already done many successful transactions with this borrower.
|Loan Amount:||$300,000 1st Mortgage|
|Value of Subject Property:||$475,000|
|Loan to Value:||64%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrower has strong credit, good assets and experience. The borrower will be contributing about $75K+ into this deal plus 1st phase of construction money.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market.