PROPERTY:
Suffolk Ln, Purcellville, VA 20132
LOAN OVERVIEW:
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $320,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $28K of their own cash plus fronting the construction costs. The property needs $55K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has done many successful transactions with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $375,000 1st Mortgage |
| Value of Subject Property: | $600,000 |
| Loan to Value: | 62% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 684 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $28K+ into this deal plus 1st phase of construction money.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.