PROPERTY:
Mantua Dr, Fairfax, VA 22031
DESCRIPTION:
The borrower is requesting a hard money loan to purchase and renovate a property he just bid on at auction. The purchase price is $615,000 and the property needs about $50k in rehab work (which actually has been started. He has a full crew currently in the house).  We lowered the loan amount slightly and wont be doing a construction hold-back since a lot of the work has been started and he is paying his in house crew directly. The borrower has decent credit, cash and experience. He will be bringing $130K to closing.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $525,000 1st Mortgage |
| Value of Subject Property: | $825,000 |
| Loan to Value: | 64% |
| Term requested: | 9 Month Balloon |
| Exit Strategy: | Resell property |
| Credit Score | 666 |
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.