Coach Lane, Suitland, MD 20746
The borrower is requesting a hard money loan to refinance a commercial car dealership purchased in cash in January 2011 for $340,000. Â Â The property owners plans to continue to run his dealership and repay the loan through the sale of several free and clear high end vehicles he owns on the lot.Â The Borrower has a 620 credit score and seems to be running a good operation.
|Loan Amount:||$90,000 1st Mortgage|
|Value of Subject Property:||$256,000 “As is”|
|Loan to Value:||35%|
|Term requested:||6 Month Balloon with 6 months prepaid interest|
|Exit Strategy:||Refinance property|
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a car dealership at a low LTV.
The cons are:
The borrower’s exit strategy of paying off through other cash assets may not work.