- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Real Estate Question
Posted on 3/2/10 at 1:10 pm
Posted on 3/2/10 at 1:10 pm
I have the opportunity to invest in some property that is worth alot more than the pay-off. If a bank loans me the appraisal amount, can I take that minus the pay-off and make improvements to the property? How does that work? Thanks!
3
Posted on 3/2/10 at 1:12 pm to Smashed Thumb
Lots of properties are worth more than the "pay off". What is the situation, an REO, does the bank own it.
They wont lend ya more than its worth, the appraised value ..
They wont lend ya more than its worth, the appraised value ..
Posted on 3/2/10 at 1:18 pm to Drop4Loss
The appraised amount is more than the pay-off. It is residential property.
Posted on 3/2/10 at 1:49 pm to Smashed Thumb
A bank is going to loan you up to the agreed upon purchase price assuming it appraises for at least that. For example if you agree to purchase a house for $120,000 and the bank appraisal comes back at $150,000, they're going to lend you $120,000.
Keep in mind I'm not factoring in downpayments, closing costs, etc.
Keep in mind I'm not factoring in downpayments, closing costs, etc.
Posted on 3/2/10 at 2:39 pm to Martavius
Its not likely, or the bank wont "accept" the appraisal, if it appraises for $150,000 with a sale price of $120,000. They will base their lending numbers on the $120,000 number.
"Meeting" of the minds for an arms lenght transaction, should not occur with a value significantly higher than the sale price. Why would somebody sell something for less than its worth or what they could get? Again a typical situation.
Market value, what its worth, is most probable price, considering all factors, condition, market, location, etc.
Pay off, or mortgage balance, has nothing to do with value....
"Meeting" of the minds for an arms lenght transaction, should not occur with a value significantly higher than the sale price. Why would somebody sell something for less than its worth or what they could get? Again a typical situation.
Market value, what its worth, is most probable price, considering all factors, condition, market, location, etc.
Pay off, or mortgage balance, has nothing to do with value....
This post was edited on 3/2/10 at 2:41 pm
Posted on 3/2/10 at 4:53 pm to Smashed Thumb
I have done a few deals where we did an appraisal of the after repair value, and they based the loan off that. For example, the bank agrees to give you 75% of the property value after the repairs are complete. The appraisal (you would have to explain to the appraiser the work you will do, plans, etc) comes back at $150,000. The bank will lend you $150,000*.75=$112,500. If you have negotiated a contract to purchase it for $75,000, you have $37,500 to use for the repairs. Local banks that you can build a relationship with are the only ones who might do this.
Posted on 3/2/10 at 10:01 pm to drenko50
quote:
Local banks that you can build a relationship with are the only ones who might do this.
I have a good relationship with a local bank and able to do this. I flip houses.
This post was edited on 3/2/10 at 10:05 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News