PROPERTY:

Village Green Dr, Alexandria, VA 22309

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to acquire an investment property to hold as a rental. The property was already renovated and being sold slightly below market value at $95,000 and needs no work. The Borrower is putting up about $37K+ of their own cash and putting a tenant in there who will be paying $1,500 per month.   The borrower is strong with a 700+ credit score and liquid cash.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $65,000 1st Mortgage
Value of Subject Property: $110,000
Loan to Value: 60%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell property
Credit Score 700


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property with no repairs needed. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $37K+ into this deal.

The cons are:

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