The bank will have a stronger incentive to get this deal closed knowing that the roof is in need of repair.

Then a couple more things that don't really effect the motivation of the caller, but will make for a stronger deal for you, is to mail to houses that are at least 10 years old, have min of 2 baths, min of 3 bedrooms, and are between 1200 sq/ft - 2500 sq/ft...

It's when you get tied up with someone that gives you a line of assurances and promises that aren't usual and customary, or based on some preceived notion that the guy you are dealing with really can follow through is where you get in trouble...IMO.Due diligence cuts both ways.

Banks lost millions restricting owner's equities and placing them in a position where ther borrower's hands were tied.

I am about to close on a space with a note floating tied to prime.

At worst, they could sue you for Specific performance... and the longer you keep the property tied up, the more upset the seller will be.So if you're going to do this, and you're using the GAR form, you need to specify like -1) Seller agrees to allow buyer to assign contract to another qualified buyer prior to closing.2) Contract is contingent upon buyer's ability to assign contract to another qualified buyer prior to closing.

I am so tired of hearing people getting screwed by these people.6,500 on a 160k purchase price is outrageous.A residential appraisal should cost about 300 to 400 bucks at market value for most hard money purchases unless it is a really big house.Now commercial appraisals DO run about 3,000 to 5,000 dollars depending on the asset type and size.The New York company sounds like they don't want to tie up there money just collect the fee.Unfortunately I know of another situation on a commercial loan where a few hundred k is involved.This lender change the loan programs on their website 6 times in the last 4 months.The FBI,attorney general,and a whole bunch of other parties are investigating this lender and going after them.This lender has been in business for over 7 years and they have a bunch of connections.When a lender holds a large due diligence fee they have little motivationto finish your file to get paid.If you talk to commercial investors who have completed a bunch of deals they will NEVER EVER pay upfront fees.They tell the lender to go spin.If the lender you pay upfront fees too wants to do your loan and even if you pay due diligence fees the lender will sometimes drag their feet.The reason is they might have 10 of the 20 million dollar loans they are making more money on the points on and then they will get around to your little loan later.You don't know their escrow company and it could be a shell corp and they are in it together.Tell the lender you will have YOUR ATTORNEY hold funds in escrow.Your attorney will pay the appraiser directly the fee after they have been vetted.Lenders who have nothing to hide-hide nothing.If they are full of BS you will here a bunch of excuses as to why you can't do this.

So now I have learned that the desired profit needs to be tied to the complexity of the rehab.

In such a small unit, there isn't a lot of wall space and the baseboard heat is going to tie up a lot of wall space.You will need an electrician to run wiring for each heater.

yes this is the property, the 20000 extra is interest ties into the purchase price.