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Eric Odum
  • Commercial Real Estate Broker
  • Tampa, FL
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Hard or private Money Valuations

Eric Odum
  • Commercial Real Estate Broker
  • Tampa, FL
Posted Jan 20 2016, 10:49

I am curious what tactics your hard or private money lender uses to arrive at a value in which they are willing to loan.  

Do they use a 3rd party appraiser?

Use 3rd party real estate agents for an opinion of value before repairs and after repairs?

Do they have internal staff to value?

and lastly, regarding repairs, I assume (please correct if different for you) the loaned funds designated for repairs are based on a draw system in which funds are dispersed based as certain tasks are completed.  Is this how it is handled in your experience?

Thank you in advance.