Understanding LTV in Private & Hard Money Lending

[Patrick Torres]

I came across the post below from an in individual in my local area looking to lend money to investors. I understand generally what LTV is, but am having some difficulty understanding what this individual may be willing to lend in the context of a BRRR strategy.

In the hypothetical example of a home purchased for $50k cash, needs $25k in repairs, ARV of $100k, would that meet the criteria below and why?

"I have money to lend for a 1st position Real Estate Contract. Up to $400K. Terms are 8% interest rate, 5 year balloon payoff, no pre-payment penalty. You must have a LTV at least 50% on the property, and own it outright with no liens."