Posted by Dan on September 20, 2004 at 13:27:10:
Thanks for the input. For the $90,000 ARV, I used recent area comps. I feel good about that number - came up with a range of $90,000-$100,000 and I was being conservative using the $90,000. So the loan was already at 67% ARV, now another $10,000 will put us up around 78% ARV. I hate to adjust the ARV now into the project just to justify extra spending.
I have not asked him to provide me evidence of the expenses to date, perhaps thats what I could do and if I feel okay that they look legit approve the rest. I just don’t want to get in too deep, and if I need to cut losses cut them early. He said he will start to market the home as is anyway and see how that goes.