Appraised Versus Current Value Advantages

Appraised Value versus Current Value

Advantages of Appraised Value

“What is the advantage of working with a fund like yours that works off the future of appraised value, versus going off the current value?”

Example:

Let’s say you’re building a spec house that’s three thousand square feet.

And when it’s built it’s in Burlingame, this 2 thousand sq ft home is going to be worth 3 million dollars.

Appraised Value:

We’ll lend 65% of that 3 million dollars

We’ll lend it out in draws because it’s a construction loan just like a normal construction loan

We do high leverage because we’re able to lend off the future value

Current Value:

If you’re just working with a lender that just uses as-is value, you’re never going to be able to do any of these large rehabs or these construction projects

Current value only does as is or a loan to cost basis

That’s our competitive advantage in the private money world and hard money world in construction.

To learn more, visit us at http://reiloanpro.com