Barkwood Drive, Woodbridge, VA 22193
The borrower is requesting a hard money loan to purchase a property through a short sale for $260,000. The property needs about $10K in work ( update kitchen, bathroom, carpet, paint and landscaping). The loan amount is $230,000 with a $10,000 construction hold back that will only reimbursed on finished work. The borrower will be contributing ~$60K at closing + starting the construction with their own money. HMB has already done 3 successful transactions with this borrower.
|Loan Amount:||$230,000 1st Mortgage|
|Value of Subject Property:||$350,000|
|Loan to Value:||65%|
|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 with only about $10K of construction needed.The borrower will be contributing about $60K into this deal. HMB has done 3 other successful deals with this Borrower.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.