Hard Money Lenders in NWI

8 Replies

Greetings,

I'm currently searching for a hard money lender who is lends for properties in the Northwest Indiana area. I currently have a deal on a duplex that's under contract and I've run into some appraisal issues with the current hard money lender I'm using at the moment because they're using appraisers who are not familiar with the market of the local area. I'm currently contesting the results of the appraisal and I'm waiting to hear their response, but I want to make sure that I have a contingency plan lined up just in case things turn sour. The LLC that I have established will be purchasing the property, which is one of the main reasons (among some others) on why I'm using a hard money lender to get the deal done. Any info provided would be appreciated.

I've invested in NWI before and had problems with valuations from HML as well. In the end, I had to come in with more down payment than I wanted to.

I'm guessing the lenders are using basically the same appraisal companies.  How can you be sure you won't have the same issue with the next one?

Originally posted by @Nghi Le :

I've invested in NWI before and had problems with valuations from HML as well. In the end, I had to come in with more down payment than I wanted to.

I'm guessing the lenders are using basically the same appraisal companies.  How can you be sure you won't have the same issue with the next one?

 That's true, but I guess I'm hoping that a local lender/appraiser can be used who knows the area very well.  For instance, this particular deal I'm currently involved with is located in the Unincorporated Lake County area. It has a Gary mailing address, but there's a different school system and the values of real estate are higher than those inside of Gary city limits.  The comps that were used were all duplex properties inside of city limits and they had significantly lower sale prices.  Since it's a multifamily property the comps are harder to find, but there are a couple of comps in the Unincorporated Lake County area that have a Gary address, higher sold prices than the comps listed in the appraisal,  and are closer to the subject property than those used in the appraisal, thus being a more accurate portrayal of what the duplex is actually worth.  The only thing the subject property has in common with any of the comps used in the report is a mailing address.

@Shalane Latiker

Gotcha. Unfortunately, I don't have any useful options for you. I have a pretty good HML that I use in the area, but they just use the standard national BPO/Appraisal companies and won't be able to price it to what you want either.

If you do find one, let know.  Always good to have some local lenders in the back pocket.

Originally posted by @Nghi Le :

@Shalane Latiker

Gotcha. Unfortunately, I don't have any useful options for you. I have a pretty good HML that I use in the area, but they just use the standard national BPO/Appraisal companies and won't be able to price it to what you want either.

If you do find one, let know.  Always good to have some local lenders in the back pocket.

Thanks for trying to help. May I have the name of the HML you use? I'd like to flip some houses within the next few months and perhaps they would be able to help me when it's involving a deal that's not quite as complicated as the duplex property.

Renovo out of Chicago is a HML who has funded several deals I've sold to investors. The appraisers they use are local and know the market. Maybe finding a private lender is a better option.

Originally posted by @Adrien S. :

Renovo out of Chicago is a HML who has funded several deals I've sold to investors. The appraisers they use are local and know the market. Maybe finding a private lender is a better option.

Thanks for the suggestion! 

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