Karen Dr., Fairfax, VA 22031
The borrower is requesting a hard money loan to refinance and renovate a property he just purchased a few months ago for $480K. When purchased the seller held back financing the majority of the purchase price. The seller agreed to subordinate there mortgage so we can be 1st lien on the property at 175K. All cashout is going towards construction on the property.
|Loan Amount:||$175,000 1st Mortgage|
|Value of Subject Property:||$800,000|
|Loan to Value:||22%|
|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 good area. The Borrower is strong with credit, cash assets and experience.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.