PROPERTY:
Lee Highway, Falls Church, VA 22042
LOAN OVERVIEW:
The borrowers are requesting a hard money loan to refinance a commercial property she owns. The property was purchased in 2009 for $550K (which seems slightly on the high side). It is currently 2 units with the bottom unit being occupied by her chiropractic practice and the top floor in the process of getting rented out for about $1,800 per month.
PROPOSED TERMS:
| Loan Type: | Refinance |
| Loan Amount: | $275,000 1st Mortgage |
| Value of Subject Property: | $ 450,000 |
| Loan to Value: | 62% |
| Term requested: | 12 Month Balloon |
| Investor return: | 12% |
| Exit Strategy: | hold property |
| Credit Score | low |
HARD MONEY BANKERS COMMENTS:
The pros are:
The lender will have good collateral on a commercial property in a good area of Fairfax county that she paid $550K for 2 years ago and worth $450K today.
The cons are:
The Borrowers exit strategy of refinance maybe tough due to credit but HMB feels its worth the risk since the LTV is low on a very solid commercial property in a good area.