A tax assessment is certainly look at at the beginning of an appraisal, as to a range of vaues expected, but has no relationship really in arriving at the market value.Lenders look at tax assessments, more in considering the payment obligation rather than as to a collateral value, but some portfolio lenders in some areas may assume they can always sell at the tax assessment.

With a VTB of 10%, our lender was willing to proceed at 2.7 even w/o CMHC (but with some cross collateral).

In full disclosure, I DID use a couple small low value properties as collateral that I wouldn't be able to get loans against anyway (south Warren $30k houses) but I also walked away with money in my pocket and access to a substantial Line of Credit with the bank to build a third building or finance other ventures.

Borrowers can lie about the income, explain away derogatory credit, but hard money is intended to be collateral driven.

Signature or Collateral Line of Credit?

@Anthony Rosa I thought the property was the collateral for a hard money loan?

I have an investment strategy and multiple exit strategies along with a lot of equity in my primary that I'm willing to use as collateral.

-They are taxed on a lower amount because the annual income is less than the lump sum-The property is collateral for them.

You cannot live in or use the real estate property financed by your IRA, nor can you use it as collateral for a personal loan.

There are loans against the LLC which have defaulted and have judgments (in federal court) filed, but there is no mention of this property as a collateral in any of the documents.The kicker is, none of these federal cases are referenced in the state foreclosure that is being done by the first mortgage holder.