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.