PROPERTY:
Old Centreville Road, Centreville, VA 20121
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property in a good area of Fairfax county. The lot is currently .6 acres and the Borrower will be building a 2,600 sq ft above ground 1,500 below ground spec house.  The property is being purchased under market value for $100,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $31K+ of their own cash. The property needs $270K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $370,000 1st Mortgage |
| Value of Subject Property: | $575,000 |
| Loan to Value: | 65% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 690 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $31K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.