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.