Haycock Road, Falls Church, VA 22043
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.
|Loan Amount:||$925,000 1st Mortgage|
|Value of Subject Property:||$1,600,000|
|Loan to Value:||58%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||Resell property|
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.