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.Â 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 Amount:||$380,000 1st Mortgage|
|Value of Subject Property:||$ 590,000|
|Loan to Value:||65%|
|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 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.