PROPERTY:
Haycock Road, Falls Church, VA 22043
LOAN OVERVIEW:
The borrower is requesting a hard money loan to refinance a very large spec investment property that they purchased 6 years ago for $450,000 (land only) and then built a 7,000 sq foot house on it . The property has been completed except flooring throughout and the kitchen. HMB is doing a full construction holdback for $100K to make sure all the work gets completed. The borrower is a custom builder by trade but went over budget on this project.  The property is listed for $1.69 Million with lots of showings but all the potential buyers want the property 100% completed before committing to buy it. HMB is collecting 3 months prepaid interest on this loan.
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $925,000 1st Mortgage |
| Value of Subject Property: | $1,600,000 |
| Loan to Value: | 58% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 632 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a great area of N. VA at a low LTV. The property is already listed for sale but just needs $100K more to finish the work in order to sell.
The cons are:
The borrower’s exit strategy of selling could take longer than expected in this market. His credit score is also lower than our portfolio average.