Macnamara Drive, Fredericksburg, VA 22407
The borrower is requesting a hard money loan to acquire an investment property. The property is being purchased under market value for $107,000 and needs rehab work (around $20,000 for new flooring, paint, doors and landscaping). The borrower are putting up about $20K+ plus fronting the 1st construction draw. The borrower has a 563 credit score, experience flipping properties and cash. HMB has done 2 successful deal with this borrower.
|Loan Amount:||$120,000 1st Mortgage|
|Value of Subject Property:||$185,000|
|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 $20K in construction. The borrower has lower credit but good assets and experience. The borrower will be contributing about $20K+ into this deal.
The cons are:
The borrowers exit strategy of selling could take longer than expected in this market.