PROPERTY:

Lee Highway, Falls Church, VA 22042

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to refinance a commercial property she owns. The property was purchased in 2009 for $550K (which seems slightly on the high side).   It is currently 2 units with the bottom unit being occupied by her chiropractic practice and the top floor in the process of getting rented out for about $1,800 per month.

PROPOSED TERMS:

Loan Type: Refinance
Loan Amount: $275,000 1st Mortgage
Value of Subject Property: $ 450,000
Loan to Value: 62%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: hold property
Credit Score low


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on a commercial property in a good area of Fairfax county that she paid $550K for 2 years ago and worth $450K today.

The cons are:

The Borrowers exit strategy of refinance maybe tough due to credit but HMB feels its worth the risk since the LTV is low on a very solid commercial property in a good area.