Hard money lending.

27 Replies

One thing that was mentioned that goes against my experience, you can refi based on the new appraised value only if you can show you have made upgrades to the house,, if you only put a little paint in one room,,they will want to use the amount you paid for the house and not based on new appraisal

The reason the refi is based on the new appraisal is you have done work to improve the property and thus the value of the house has increased,,the fact that you got a great deal doesn't really matter to the lender,,they want to lend on what you paid if you haven't improved the property.

That's been my experience anyway,,but hey, not usually a problem, I normally have to do a lot of improving!

Originally posted by @Andy Collins :
One thing that was mentioned that goes against my experience, you can refi based on the new appraised value only if you can show you have made upgrades to the house,

That may be true. My experience has always included a lot of repairs. If you're buying a house that literally needs zero repairs then you're probably better off going conventional route with a higher down payment.

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