Harford Road, Parkville, MD 21234


The borrowers are requesting a hard money loan to refinance a commercial building he owns in Parkville, MD.  The property is 5000 square feet and owned since the 80’s.  It is owned free and clear and runs his furniture business out of it as well as renting to some small retail businesses.  The Borrower’s credit is 650 and needs some quick cash to cover some taxes and small business expenses.


Loan Type: Refinance
Loan Amount: $80,000 1st Mortgage
Value of Subject Property: $ 300,000
Loan to Value: 27%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Refinance property
Credit Score 650


The pros are:

The lender will have good collateral on a commercial property in a desirable area of Parkville (Baltimore area) outside the beltway on Harford Road.

The cons are:

The Borrower’s exit strategy of refinancing could take longer than expected but the risk is worth taking since the LTV is so low.  The have a few back up repayment plans if necessary.  One includes paying the loan off through a mortgage against their free and clear primary residence.