Annandale Road, Annandale, VA 22003


The borrower is requesting a hard money loan to acquire an investment property to level and rebuild a 2,900 sq ft brand new home.   The property is being purchased under market value for $148,500 (which is very low for Annandale).  The borrower has a lot of experience flipping and building properties and does many transactions on a monthly basis.  The Borrower is putting up about $34K+ of their own cash.  The property needs $207K in work.  The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done many successful transactions with this Borrower.   HMB is doing a full construction holdback and only reimbursing funds on completed work.


Loan Type: Purchase
Loan Amount: $355,000 1st Mortgage
Value of Subject Property: $ 550,000
Loan to Value: 65%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 690


The pros are:

The lender will have good collateral on an investment property with minimal construction needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $34K+ into this deal.

The cons are:

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