Hard Money Equity Cash Out Loan for Townhouse in Baltimore, Maryland

Myers Capital, a direct private lender, funded a $130,000 first lien position cash-out hard money loan secured by a two-story townhouse in the Mondawmin neighborhood of Baltimore, MD. The property value was estimated at $200,000 so our loan-to-value ratio was 65%. The Borrower was an experienced real estate investor who was looking to expand their growing real estate portfolio. The loan was held in the name of their LLC, which helped build credit for their real estate business and limit personal liability. The three-bedroom, one-bath property was recently updated with new kitchen appliances, countertops, bathroom tiling, and fresh paint. The Borrower plans to use the funds to purchase more real estate. They already own investment properties in the Midwest and Mid-Atlantic regions. The Borrower plans to refinance to pay off the loan as an exit strategy. The 1,200-square-foot subject property was in good condition and vacant at closing. The interest rate was 15% and we charged 4.2% origination points. The loan term was set at 12 months. This cash-out refinance hard money loan was funded in February 2024.