PROPERTY:

Village Way, Alexandria, VA 22309

DESCRIPTION:

The borrower is requesting a hard money loan to purchase and renovate a property.  The purchase price is $109,000 and the property only needs about $5k in rehab work. We will hold all construction funds in escrow and will reimburse for completed work.  The borrower is bringing $44K to closing.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $80,000 1st Mortgage
Value of Subject Property: $125,000
Loan to Value: 64%
Term requested: 9 Month Balloon
Exit Strategy: Resell property
Credit Score 631

HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment property.  The borrower is bringing a lot of cash to the table..

The cons are:

The borrower’s exit strategy of selling could take longer than expected in this market.