PROPERTY:
Barkwood Drive, Woodbridge, VA 22193
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $230,000 1st Mortgage |
| Value of Subject Property: | $350,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 672 |
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.