All Forum Posts by: Andrew Meyer

Matt you may still be walking into some equity, you never know.  I was a loan officer at countrywide lending for 3 years and as others have said I have never seen an appraisal on a purchase be much higher than the purchase price.  If there is a large difference between purchase price and appraised value it is always that it came in too low.  Appraisers rely on mortgage companies to give them business and the last thing they want is to get singled out by the bank as unreliable.  Banks are not in the business of owning homes, so if an appraiser overvalues a property and the bank forecloses or takes a short sale it could negatively affect that appraisers reputation.  Therefore the appraiser's usually think of appraising purchases like this.....Is this house worth what the buyers are paying?  That is essentially the only thing that matters to the bank as it pertains to value.  There are other things they are looking for as well such as cost to cure etc, but the value's only purpose is to support the value that the bank is lending money on.  Remember this-"The truest valuation of how much a property is worth, is how much someone is willing to buy it for."

So in this case the day you close, your house is worth $253k and their is no disputing that, however on day two it is speculative & based on the comps in the area.  So cheer up and don't worry about the appraised value, it means nothing as far as the tremendous deal I am sure you just got!

Hello BP Fam,

Yesterday I was personally delivering payments to my private lenders. I've always delivered payments to my local lenders in person partially because I'm crazy but I feel it's good business to thank investors in person for believing in your business decisions!

While making some small talk with my biggest investor about looking for more deals he gave me the "green light" to shop for more deals and jokingly said that he wants to see my debt to him grow much bigger.

If you are struggling to raise private money get extremely detailed on what you plan to do with your investors money and kick on doors till you get your first yes! Once you land your first investor treat them like gold and they will continue to invest in you. They will brag to their friends on the golf course about the nice passive returns they are earning by working with you and before you know it you will have access to more investor money then you will be able to invest. 

Just sharing some morning motivation. Hit me back and share your private money stories or questions