Common Appraisal Questions with Investment Loans

Transcript (auto-generated)

Hey, it’s Akinyi from Western Capital again. Today, we’ll talk about appraisals for private money loans for non owner occupied investment properties. Can we use an existing appraisal? Yes, but it must be done by an appraisal management company ordered on behalf of another lender, who will then reassign it to us.

It cannot be one that you ordered on your own, and it cannot be over 90 days old. Otherwise, a recertification may be required. Well, what if the appraisal comes in higher than the purchase price? Great! However, the loan amount will be based on the lower value, which means a higher down payment for you.

Even if the seller does not lower your price, your higher payout later should make up for this investment. Most lenders don’t care where the money comes from, as long as it’s at the bank or the title company before close. What if I don’t agree with the value? We can change it. We would need three to four additional comps sold in the last six months within half mile from the property, with similar condition square footage.

Bedroom and bathroom count. What if there’s a for sale sign at the property? Doesn’t change a thing. However, if you lower your price, even lower than the appraised value, this lender will base the loan on your reduced list price, because that is what even you believe the property is worth. So email us to discuss your deal today.