PROPERTY:

Ballew Ave, Berwyn Heights, MD 20740

LOAN OVERVIEW:

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.

PROPOSED TERMS:

Loan Type: Purchase
Loan Amount: $150,000 1st Mortgage
Value of Subject Property: $375,000 (quick sale)
Loan to Value: 40%
Term requested: 9 Month Balloon
Investor return: 12%
Exit Strategy: payoff other
Credit Score ?


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.