PROPERTY:
Macnamara Drive, Fredericksburg, VA 22407
LOAN OVERVIEW:
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.
PROPOSED TERMS:
| Loan Type: | Purchase |
| 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 |
| Credit Score | 553 |
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.