PROPERTY:

Elmtree Street, Baltimore, MD 21226
4 Free and Clear Property Refinance


LOAN OVERVIEW:

The borrower is requesting a hard money loan to refinance several free and clear properties she owns in Baltimore.  The 4 we are going to collateralize have a combined conservative liquidation value of $140K and are rented for a combined amount of $3,500 per month.  The Borrower has good credit and owns over 13 properties currently that all cash flow.  The cash out is going towards other month she has to purchase a 35 unit building out of state.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $75,000 1st Mortgage
Value of Subject Property: $140,000 (as is)
Loan to Value: 54%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: Resell properties
Credit Score 700


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on several investment properties that are cash flowing.   The borrower has strong credit, good assets and experience.

The cons are:

The Borrowers exit strategy of selling could take longer than expected in this market.