3401 Albion Ct, Fairfax, VA 22031
311 Virginia Ave, Brookneal, VA24528


The borrower is requesting a hard money loan to refinance an investment property that he purchased early this year. The property needs about $35k in rehab work. The refinance is covering the payoff and the Borrower is not getting any additional cash back.  HMB will be doing a full construction holdback of $35K.  The borrower is also posting another free and clear property he owns in Brookneal, VA.


Loan Type: Purchase
Loan Amount: $360,000 1st Mortgage
Value of Subject Property: $550,000 (subject property only)
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 637


The pros are:

The lender will have good collateral on an investment property in a good area. The borrower has experience flipping properties and is posting another piece of property for us to collateralize in first position.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.