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. Â 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.