Avatar's Blog
» What is This Property Worth?
The value of property lies in its ability to be sold. For hard money lenders, in the event of a loan default, the property must be sold quickly. So the value of property is closely tied to the number of uses it might have, which directly increases the number of potential buyers for the property.
If you have a commercial or industrial property you wish to collateralize for a hard money loan, cxonsider the uses the building might have. For example, a very savvy broker told me today that he is representing a group which owns a Legion Hall built about 10 - 20 years ago. The ceiling, he noted, is a drop-ceiling. The space is large and undivided by solid, non-moving walls. Therefore, he told me, if a manufacturer wanted the building, he could easily remove the drop-ceiling and make use of the property for manufacturing or storage.
Consider the special elements of the building you are collateralizing. Be sure that Avatar's appointed appraiser knows of them and understands how they will increase the potential uses for your building. This will increase the value, which may increase the size of the loan you are able to obtain.
