Get Paid For Deals
Free Live Training!
Get Started Now!

--------------------------
Need REI Funds?
All the Funds You Need
Get It Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
November 18, 2017, 03:32:56 PM

Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Get Paid For Deals
Free Live Training!
Get Started Now!

--------------------------
Need REI Funds?
All the Funds You Need
Get It Here Now!


Welcome, Guest. Please login or register.
Did you miss your activation email?
November 18, 2017, 03:32:56 PM

Home Help Search Calendar Login Register
Free Monthly Update
Name:
Email:
Click Here to Register for the Discussion Forums
Real Estate Investing Forums | Real Estate Investing | Financing, Hard Money Lenders, Credit, Qualifying (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas) | Topic: Attn: Private / Hard Money Lenders - Property Valuation Survey
« previous next »
Pages: [1]
Print
Author Topic: Attn: Private / Hard Money Lenders - Property Valuation Survey  (Read 1058 times)
rharrist
Member
*
Offline Offline

Posts: 3


« on: December 23, 2010, 08:07:18 PM »

If you are a hard money, portfolio or private lender, your input would be greatly appreciated!

I'm a certified residential appraiser and real estate broker.  I want to develop superior valuation products (appraisals, BPO and comp checks) to better serve the hard / private money rehab lenders in my area.

Can you tell me:

1. What valuation products do you use most?  BPO, Appraisal, Comps, AVM, Zillow, etc.?

2. What appraisal or BPO forms do you prefer?  Fannie, Freddie, 1004, 2055, interior, drive-by, general purpose, other?

3. What are your pet peeves in regards to the valuation products you are getting now?   

4. How can the valuation products you need, be improved?

Thanks in advance for your feedback!


Report to moderator   Logged
rookieNYC
Member
****
Offline Offline

Posts: 994



« Reply #1 on: December 23, 2010, 09:04:06 PM »

1...Zillow,Cyberhomes,EAppraisal,BPO's,sales comps ON THE SAME BLOCK,Pricing of foreclosures near the property
2...Drive by...photos etc....
3...Pet Peeves are many...Comps as close as possible,Pricing the closest foreclosures and how many are around the property...NEVER LEND ON ARV OR APPRAISED VALUE...*never*...Never believe anyone but your own research....Even BPO's are not %100...Safest ways imo is to get a very reputable CCIM and get your BPO's then deduct %20 and lend at %50 LTV of that number...
4...IMO its impossible to get a bulletproof valuation model of properties...Instrinsic value is an opinion of the lender...It can never be a set number...Real Estate unlike stocks is only worth what someone will pay for it..And a hard money lender has to firesell a property so that must be considered when making the loan initially...You dont lend on what the retail value is of the house...Thats why you have to deeply discount the BPO...I often debate this with the borrowers...I also deduct what I feel the market Im lending in will be dropping over the term of the loan..HML's have to make the deal a no brainer,no risk,and all reward for them...
Report to moderator   Logged
rharrist
Member
*
Offline Offline

Posts: 3


« Reply #2 on: December 23, 2010, 10:34:08 PM »

Sounds like ARV and even Liquidation value opinions are too optimistic.

In addition to analysis of the subject property, you should be getting micro market analysis of the subject neighborhood or immediate market area, which would include market direction, inventory / absorbtion rates, foreclosure & short sale ratio, sold vs listing days on market, etc.  Then you would have a good "feel" for the market you're lending in.  In Denver, one neighborhood is appreciating, while another is flat or depreciating.

Are multiple value opinions helpful?  As-is (normal market time & liquidation), Subject to/ ARV/ As-Improved (normal market time & liquidation)?

Thanks for the help so far.
Report to moderator   Logged
rookieNYC
Member
****
Offline Offline

Posts: 994



« Reply #3 on: December 24, 2010, 12:24:35 PM »

include market direction, inventory / absorbtion rates, foreclosure & short sale ratio, sold vs listing days on market, etc

If you read my first post again it includes all these points...A comp has how many days the property was listed before sold...I pointed out that I price various foreclosures around the subject property...I also pointed out that I take into consideration future depreciation in the area the subject property is in...Aborbtion and inventory are irrelevant because every market has a ton of inventory and absorbtion is slow everywhere...(more or less)
« Last Edit: December 24, 2010, 05:17:31 PM by rookieNYC » Report to moderator   Logged
rharrist
Member
*
Offline Offline

Posts: 3


« Reply #4 on: December 26, 2010, 10:46:31 PM »

Thanks for sharing your experience, RookieNYC.
Report to moderator   Logged
Pages: [1]
Print 
Real Estate Investing Forums | Real Estate Investing | Financing, Hard Money Lenders, Credit, Qualifying (Moderators: $Cash$, Bluemoon06, kdhastedt, Mdhaas) | Topic: Attn: Private / Hard Money Lenders - Property Valuation Survey
« previous next »
Jump to:  



Login with username, password and session length

Powered by SMF 1.1.8 | SMF © 2006-2017, Simple Machines LLC