Lakewood, CO · Member since 2021 · 28 posts · 15 votes
Hi BiggerPockets people!
We have found a property we are interested in that has a single family home and a duplex on one property. We are looking at how to get funding for this property, but we’re told that because it’s so unique, even if we get a hard money loan it may not be possible to refinance into a conventional mortgage because it’s too unique and there’s no way to value the property because there just aren’t any comps. Has anyone run into this problem? How can they accurately appraise the property? We don’t want to have long term private loans and be paying a much higher interest rate. Any ideas?
Hey, @Nina Telthorst! Sounds like a really great opportunity! How many lenders have you talked to? I have someone in mind that is very investor-friendly and might be able to provide a little bit more insight than I could. Happy to connect you!!
Hey, @Nina Telthorst! Sounds like a really great opportunity! How many lenders have you talked to? I have someone in mind that is very investor-friendly and might be able to provide a little bit more insight than I could. Happy to connect you!!
@Kayla Givens we have talked to a few, nothing has been a good fit so far. The concern with hard money or a bridge loan is if we are unable to refinance into a conventional loan in 6 months because of lack of appraisal would be detrimental…but is that true?! I can’t imagine an accurate appraisal isn’t possible.
Properties have to be comp'd against "like" properties that are similar in style, size and utility AND that have closed in the last 6 months or so to have an accurate picture of value. If there's an extra house on the property, it will be hard to find something similar and it makes for a very difficult and expensive appraisal that may or may not work for a lender.
@Nina Telthorst - I may be out of my wheelhouse on this one. I'll try reaching out to one of my lenders and appraisers and see what I can find out for you!