Tell them to be precise on that day because you're asking other lenders the same.

In this scenario, the cap rate analysis actually leads to a wrong decision precisely because it takes equity out of the equation.

Get at least three quotes for each, but be sure you've developed a precise scope of work for the rehab and build specs for the new construction, right down to the number and location of electrical outlets and what kind of doorbell will be installed. 

It always pays you to ask around and get informed on precisely what your liability actually is vs. listening to fear-mongering as fact.

Well, to be precise, the LPs are screwed and face a total loss of principal.

@Daniel HaberkostDo you know how precisely properties are zoned?

You need to be able to peg with reasonable precision what the ARV is based on the borrower's proposed repairs. 

So if you’re going to build then you want to be precise on your numbers or youll lose money fast.

Note in the episode how precise he is with his market of end buyers, how he finds properties that fit his model, how he structures everything, etc.

PRICE: They can set the initial price right and provide the seller with a fairly precise estimate of how much we can sell it for, and can be fairly assertive when discussing with the seller the listing price2.