Hard Money Loan for Medical Condos Purchase in Lake Ridge, Virginia

Equity Lending, Inc., a direct lender for the DMV region, provided a $600,000 1st lien position hard money loan for the acquisition of 3 contiguous leased medical condominiums with a total of 4,500 square feet in Lake Ridge, VA. The purchase price was $792,000. The Borrower contributed $192,000 cash to the deal, which equated to a 32% down payment and a loan-to-value of 68%. This was a repeat Borrower which enabled us to bump the LTV slightly higher than we normally would. The loan had to close quickly due to the failure of getting a traditional loan. We were able to close this loan in less than seven days. In addition to a first deed of trust securing the loan, the strong Borrower personally guaranteed the loan. The exit plan was to refinance with a traditional bank loan which the Borrower could do before the end of the 12-month loan term. The interest rate was 12% and we charged 4% origination points. This hard money loan was funded in September 2015.