All Forum Posts by: David Weintraub

Because if you believe it's going to appreciate, you might be paying a small fee for an asset that will be worth quite a bit down the road.  NYC doesn't really depreciate long term. 

Yes, on avg banks will give you up to 70-75% of the value of the property, except many will want to see "seasoning", which is a time period you've held property.  That could be anywhere from 3-6 months, maybe more.

Easiest example:

Property sells for $100,000

Rehab: $50,000

ARV: $200,000

Lender makes you put down 20% of purchase, so you're in $20,000. Lender giving you 65% of ARV, which is $130,000 ($80,000 purchase / $50,000 rehab).

Once complete, property worth $200,000.  Bank hopefully gives you 75% of current value, which is $150,000.  That should take you out of the hard money loan, and leave with you with a few thousand left over, after you calculate closings costs (points, fees, insurances, holding costs).

Outside of traditional banks, there are lenders who will also give you 65-80% of final value, with lower credit scores, and without Debt-to-Income (DTI) concerns.

I'm looking for an appraiser who works on investment grade properties, who understands ARV, "as is", SFRs and Multis.

If anyone has had a positive experience with an appraiser in that region in the recent past, please send me a note.

Whether they're great, or not great, I'm sure there are many satisfied customers.

That said, I think her biggest complaint seems to be they weren't upfront with her regarding what they said they would do, and what they did do.  Whether that's the fault of an entire company, or a single individual, doesn't really matter to the customer.  When my company messes up, we're all to blame.