Old Centreville Road, Centreville, VA 20121
The borrower is requesting a hard money loan to acquire an investment property in a good area of Fairfax county. The lot is currently .6 acres and the Borrower will be building a 2,600 sq ft above ground 1,500 below ground spec house. The property is being purchased under market value for $100,000. The borrower has a tremendous amount of experience flipping properties and does many transactions on a monthly basis. The Borrower is putting up about $31K+ of their own cash. The property needs $270K in work. The borrower is strong with a 684 credit score, experience flipping properties and money in the bank. HMB has already done successful transactions with this Borrower.
|Loan Amount:||$370,000 1st Mortgage|
|Value of Subject Property:||$575,000|
|Loan to Value:||65%|
|Term requested:||12 Month Balloon|
|Exit Strategy:||Resell property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on an investment property. The borrowers have strong credit, good assets and experience. The Borrowers will be contributing about $31K+ into this deal.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.