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.