PROPERTY:

Oak Hollow Lane, Fairfax Station, VA 22039

DESCRIPTION:

The borrower is requesting a hard money loan to acquire an investment property that was just picked up under market value for $415K at an auction sale.  The property needs very little rehab work. The borrower is putting up about $210K+ of her own cash plus funding construction costs.  HMB has done 1 other successful transaction with this borrower.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $220,000 1st Mortgage
Value of Subject Property: $450,000
Loan to Value: 49%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 677

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property . The borrower will be contributing a lot of cash ($210K) into this transaction and has experience flipping properties.

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.