Here’s another question that you will probably want to answer for your own private lender program. This is how I answer it from my own private lending FAQs.
The question is: How do I know the value of the property I am lending on? And my answer is:
First, if you want an independent third party certified appraiser to appraise the property, we can definitely provide that to you upon request. This is the same type of analysis that banks will typically do to verify value before they lend.
We can also provide you with recent comparable sales of other properties that are similar to that property and that are near that property. This can give you a very accurate idea of what the property is worth after all the repairs have been completed.
Should the property need repairs (and many do), we can provide you with a list of the repairs we plan to do on the property and what we expect those repairs to cost.
If there is anything I can do to help you feel comfortable about knowing the value of the property that is securing the loan you are making, please do let me know.
Until my next post,
James
