Haymarket Lane, Centreville, VA 20120
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value at the auction for $188,000 and needs very minimal work (maybe $5,000 to spruce it up) The Borrower is putting up about $57K+ of his own cash. The borrower is strong with a 700 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
|Loan Amount:||$145,000 1st Mortgage|
|Value of Subject Property:||$230,000|
|Loan to Value:||64%|
|Term requested:||6 Month Balloon|
|Exit Strategy:||Resell property|
|January 21, 2010
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property with minimal construction needed. The borrower has strong credit, good assets and experience. The Borrower will be contributing about $57K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.