PROPERTY:
3401 Albion Ct, Fairfax, VA 22031
311 Virginia Ave, Brookneal, VA24528
DESCRIPTION:
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.
PROPOSED TERMS:
| 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 |
HARD MONEY BANKERS COMMENTS:
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.