Hard Money Loans based on After Repaired Value

[Darius Ogloza]

I would be grateful if anyone could shed light on the process hard money lenders typically go through to establish the after repair value of a property when ARV is the basis for the contemplated loan. How long a diligence period can one expect? Any experience with this issue in the SF Bay Area is especially welcome.

[Mark Safrin]

Originally posted by @Darius Ogloza:

I would be grateful if anyone could shed light on the process hard money lenders typically go through to establish the after repair value of a property when ARV is the basis for the contemplated loan. How long a diligence period can one expect? Any experience with this issue in the SF Bay Area is especially welcome.

The ARV is established by appraisal like LTV You will need to provide a Scope of Work for the appraiser to use. Using us as an example - we expect to close 3-4 business days after the appraisers leasurely grace us with their report. During this time Title should have been taken care of. We expect to close on a SFR in about 2 weeks or so. When all the stars miraculously align we can do it in about 9 business days.

Of course all this presume the borrower is also prompt and there are no delays. I could probably write a book already on ways that due diligence/underwriting/closing can be delayed.