An executive summary consists of a few paragraphs which explain why you need a hard money loan, and why you think your project will be a success.
Take a few minutes to describe the real estate you own, or plan to purchase, and its current value. Tell how the value of the property has been established. If you are buying the property, what are you planning to pay for it?
How much do you need to borrow (up to 50%-65% maximum of the quick sale value of the property)? Do you have the required 20% cash or equity the borrower must invest in the project? Can the other 15%be financed in the form of a seller carry back or other subordinated 2nd mortgage?
Describe what you will do with the property? If the subject property is income producing is there at least a 1.2:1 income to expense ratio? How will you make money by owning the property? How will you make the monthly payments on the loan you are requesting?
What is your exit strategy? A hard money loan is a bridge loan on a commercial property that will run up tothree years. What will you do at the end of this three year term? Will you be able to sell the property or refinance it with a new commercial mortgage?
