Mantua Dr, Fairfax, VA 22031
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.
|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|
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.