Posted by Ed Garcia on January 08, 2001 at 19:49:01:
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.