That is how I have always done it and it is pretty accurate if you take a 5 year look at a property with capital improvements that need done.

This is mostly due I believe, to the 60M high school, and 23M other improvements in educational structures and purchases they made in the last 3 years, and a few other improvements to a sprawling community 30-45 minutes outside of a large urban area.

I use rentecdirect which is a web-based up to the minute type of software that I use that allows owners to go to their property at any given time and see how their property is performing.

How likely is it to find a bank that would loan on a home improvement as a second lien holder and keep the interest rate under 6%.

How can I improve my experience in finding a good GC for renovation work?

Not sure how true this isand also I’m not expert in this topic ( disclaimer ) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Short story , I was at local REI meeting earlier today Conversation was regarding private money It was discussed that individuals our getting private funds ( 6 – 8% ) then taking those funds and offering separate loans to another investors as a hard money rates (14 above % )Pocketing the differences on positive transactionsImportant – I know there laws about distribution private and hard money loansHere how I visualize individuals our performing this type of funding:Sub1 – person who offering original private money ( IRA / etc )Sub2 - let name Johhy B Nasty ( middle guy )Sub3 – person looking for funds , but have no credit / exper. / etcPossible transaction :==============================================Sub2 - borrow money from Sub1 at 7% for 9 months Sub2 - borrow new obtained funds to Sub3 at 14% for 7 months Sub3 - completes rehab, market property, &sell to new home ownerSub3 - pays back Sub2 original loan amount + interest used ( 14 % + rate )Sub2 - immediately pays back Sub1 + interest used ( 7% rate )Sub2 - made interest off of Sub3 rehab deal basically ( the interest rate difference )Everyone happy -> sub1 , sub 2, and sub 3Again~I know their laws & licensing for offering private/hard funds

You may wait 6 months to improve your credit to see if you could get a lower rate, but who knows where market rates will be.

(If you develop a reputation of buying distressed properties and improving them, you become an asset to the 52.

Being a business guy, I'll assume I'll be secured, that you will perform and in the event you don't I can replace you easily.Just some initial thoughts, from there I can see if you have your ducks in a row and we can go from there

But you want to take the value of the land away from total value, that is the assessed value of the improvements.