Appraisal or Sales contract ? - Posted by Pat

Posted by Don Dion on May 01, 2003 at 14:39:15:

HMMM I assume your looking at commercial. Its a combination of NOI, Purchase Price, Appraised value ect.

Appraisal or Sales contract ? - Posted by Pat

Posted by Pat on April 29, 2003 at 11:39:29:

What do banks and other lenders base the amount they will loan you on a property? Is it the market value (comps), appraisal, or do they want to see the signed sales contract?

Does LTV (loan-to-value) mean the amount the lender will loan (%) based on the market value?

Thanks
Pat

Re: Appraisal or Sales contract ? - Posted by Mike

Posted by Mike on May 01, 2003 at 15:12:05:

LTV is viewed differently depending on the type of lender.

To a bank, it generally means the % of appraised value.

To a hard money lender, it means the % market value in fixed up condition after all repairs are done, assumming you’re fixing it up.

Banks don’t like loaning on “after repaired value” because they don’t trust anyone to repair it. :slight_smile: Of course, some people out there are getting banks to do that, but they have to either be established, or have a really good business plan put in front of the banker.