Haycock Road, Falls Church, VA 22043
The borrowers are requesting a hard money loan to refinance a very large spec investment property that they purchased 5 years ago for $450,000 (land only). The property has been completely built from the ground up to the point of everything exterior being completed and the interior being framed, sub floor installed, windows installed and electrical run.Â Everything completed in this house so far has been cash out of pocket from the Borrowers (besides the cost to of the land).Â The cash out from this loan will be held in a rehab reserve and only disbursed on completed work.Â It needs about another $180k to get completed.Â The Borrower is a custom builder by trade.Â HMB is collecting 6 months prepaid interest on this loan.Â The property will be worth between $1.4 mill to $2.1 mill upon completion.Â Although the owner and their real estate agent plan to list the property at $1.9 mill, HMB is basing this loan off a $1.4 mill quick sale.
|$700,000 1st Mortgage
|Value of Subject Property:
|Loan to Value:
|12 Month Balloon
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 very low LTV.
The cons are:
The Borrower’s exit strategy of selling could take longer than expected in this market. Â His credit score is also lower than our portfolio average.