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.Â HMB has done a successful deal with this Borrower.
|Loan Amount:||$195,000 1st Mortgage|
|Value of Subject Property:||$300,000|
|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 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.