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» Building a Hard Money Loan Package - Establishing

Posted on 6/30/2005

Hard money lenders send out their appointed appraisers to review collateral properties and determine the quick-sale value - what the property will change hands for today. If you are buying a property, chances are that number will be what you are paying for the property. If it is less, consider it a warning not to buy the property at the sum you were considering. If you have a sale agreement with the seller, the number will not come in at more, as your offer for purchase is the number at which the seller is willing to sell. He or she required no more to agree to sell.

If you are refinancing a property, you may want to help the lender determine the quick-sale value of your property in the following ways.

  1. Find out what similar properties are selling for in your area
  2. Look at the property and consider what other uses it might have. An old inustrial building no longer valuable in its old capacity is being converted into heated, locked retail self storage units for antique dealers and collectors by a savvy owner. His vision helps the lender see a valuable use and more potential buyers for the building, thereby increasing its value.
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