BiggerPockets

Hi I have an opportunity to close on a 4.5 million dollar loan on some of my collateral and I have a very reputable hard money lender. I need The 29,500 to close my loan it is for the appraisal and review. I do not have any credit cards or any thing with that balance. At closing I will have over 700k left after my purchase. They want to close my loan very fast the expiration of my LOI is on the 17th.

OMG, hearing that number makes me feel like small fry.

the average appraisal for commercial is between 4,500 -6,500 each in this case it is for 4 very large buildings and 6 lots. Mai Appraisals are very expensive.

Thank you but I would rather work with my current hard money lender since they have a great and long running track record of doing deals.

That is true unless you have an old one that just needs redoing like me it can be done in 2-3 weeks.

Yes appraisals are expensive.I would make sure the payment went directly to the appraiser and there were no junk fees involved.

How much is it for review and how much makes up the appraisal?? What if they don't want to do the loan after the appraisal??

You are asking other people to eat the cost of paying the upfront appraisal fee.

I remember before you had well over this amount of cash to do a deal.

I'm a little confused by Anthony's post as well, but what makes sense to me is he's taking out a $4.5 million loan against property he already owns. The difference between his current mortgages and $4.5 million is $700k. Basically a cash out refinance. Not sure where the "purchase" comes in.

The property is 4 buildings and six lots and my old appraisal is or was in 2008 for 16 million and I have a field report of 12.5. so the lender said he has no problems giving me the 3.8 for purchase and enough money to make the payments on it for 1 year while I get my construction financing in place. so 3.8 is the purchase and 500 is the payments for a year roughly the rest is to tie up lose ends.

How can you have $350,000.00 invested in a deal you do not own?

Since when does a gross income of $1000 per week justify a $29,500.00 unsecured loan?

Any legitimate lender knows that a property is worth what someone pays for it. If you are buying a property for $3.8 million, then it is worth $3.8 million, not $16 million. Otherwise the seller would sell it for $16 million.

If I understand you correctly you have already lost $350,000.00 on this deal, now you have no cash and want someone else to take a $29,500.00 unsecured flyer so you can attempt to purchase this property with no money down and a loan for $700k in excess of the purchase price.

None of this makes the least bit of sense.

also I have borrowed the money from a colleague. I am going to close my loan sorry it made no sense im not the best at describing things as i stay so busy and i make more than 1k a week with my retirement ect.