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%. Â His lack of credit score is also unusual.