PROPERTY:

Westlake Drive, Potomac Falls, VA 20165

LOAN OVERVIEW:

The borrowers are requesting a hard money loan to refinance a commercial property where the current mortgage has come due. The property is in good condition and is rented out for $3,200 per month.  This commercial office suite is 1,500 square feet with a re-sale value of $340,000.  They purchased the unit in 2004 for $335,000.

PROPOSED TERMS:

Loan Type: Refinance
Loan Amount: $230,000 1st Mortgage
Value of Subject Property: $ 340,000
Loan to Value: 67.6%
Term requested: 12 Month Balloon
Investor return: 12%
Exit Strategy: Refinance property
Credit Score 626


HARD MONEY BANKERS COMMENTS:

The pros are:

The lender will have good collateral on an investment commercial property with no construction needed. The property generates $3,200 per month rental income.

The cons are:

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