Posted by Ed Garcia on January 08, 2001 at 19:49:01:
Cork,
Most lenders will lend based on appraised value, or purchase price, which ever is LOWER. Hard Moneylenders will lend based on Market Value, regardless of the Purchase price. Remember a property can be valued below market value based on its condition. So if you purchased a property below market value because it was in poor condition and fixed it up, it is not necessarily future value, as much as in doing the fix ups, you now brought it up to Market Value.
Posted by Cork Horner on January 08, 2001 at 19:19:09:
HEY ED,
Remember me from the lenders workshop? i was that
meek guy who never said much… ;-] Regardind your
position on hard money lending, i don’t remember
hearing you comment on hard money lenders doing 65%
based on future value appraisals. So I am asking
you how do you handle these out of your office?
Another topic is that I am pretty close to
beginning the repairs on a deal in Rialto, Ca with
Bill Gatten and one of his students. i look
forward to testing the water in the Inland Empire
so I can drop in so you can buy lunch.