PROPERTY:
Cedar Croft Place, Brentwood, MD 20722
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to refinance a commercial building they own. The 1800 sq foot building was originally purchased in 1997 for $170,000 and is current used as a recording studio. The Borrowers plan to sell the property in the lower $20o,ooo to repay the loan.
PROPOSED TERMS:
| Loan Type: | Purchase |
| Loan Amount: | $60,000 1st Mortgage |
| Value of Subject Property: | $200,000 |
| Loan to Value: | 30% |
| Term requested: | 9 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | Resell property |
| Credit Score | Â 559 |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a commercial property at under a 30% LTV.
The cons are:
The Borrowers exit strategy of selling could take longer than expected in this market.