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.