PROPERTY:
Sagamore Court, Woodbridge, VA 22192
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to acquire an investment property that is bank owned for a discount. The purchase price is $189,000 and needs rehab work of $30,000 to update the property. They will be replacing carpet/flooring, kitchen and bathroom upgrades, paint and landscaping. The Borrowers are putting up about $42K+ of their own cash plus fronting the 1st construction draw. The borrower is strong with a 700 credit score and cash to contribute into this deals. HMB has done a successful deal with this Borrower.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $195,000 1st Mortgage |
| Value of Subject Property: | $300,000 |
| Loan to Value: | 65% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | 700 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property in a nice area where most properties sell for over $300,000. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $48K+ into this deal. + fronting construction.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.