Sagamore Court, Woodbridge, VA 22192


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.


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


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.