Silverleaf Drive, Fairfax Station, VA 22039


The borrowers are requesting a hard money loan to acquire an investment property that is bank owned for a discount. The purchase price is $95,000 and needs rehab work of $60,000 to completely update the property.  They will be replacing carpet/flooring, kitchen and bathroom upgrades, paint and landscaping). The Borrowers are putting up about $48K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 700 credit score and cash to contribute into this deals.


Loan Type: Purchase
Loan Amount: $380,000 1st Mortgage
Value of Subject Property: $ 590,000
Loan to Value: 65%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700


The pros are:

The lender will have good collateral on an investment property in a area of nice homes that typically all sell for over $600,000. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $47K+ into this deal. + fronting construction.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.