Ballew Ave, Berwyn Heights, MD 20740
The borrower is requesting a hard money loan against his commercial industrial space where he operates his commercial contracting company. The quick sale value is $375,000 although with valuation help from a leading commercial broker, he thinks the property could sell for $450,000. Cash out is going directly to his business. The Borrower plans to repay the loan through receivables in the business.
|Loan Amount:||$150,000 1st Mortgage|
|Value of Subject Property:||$375,000 (quick sale)|
|Loan to Value:||40%|
|Term requested:||9 Month Balloon|
|Exit Strategy:||payoff other|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral at a very low ltv.
The cons are:
The borrower’s exit strategy is a little speculative which is why we limited the LTV to 40%. His lack of credit score is also unusual.