Village Way, Alexandria, VA 22309
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.
|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|
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.