BEST Hard Money Lenders For Real Estate | Hard Money Loans Explained
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The real estate market is currently facing a significant issue with hard money lenders not appraising properties at their true value, leading to deals falling out of escrow. This problem affects both owner-occupied properties and real estate investors, and it is exacerbated by increasing lending restrictions due to the Federal Reserve's interest rate hikes. As a result, hard money lenders are becoming more conservative with their appraisals, leading to lower property valuations and affecting everyone involved in the transaction. To overcome this issue, the host advises wholesalers to ensure that earnest money is deposited immediately upon signing the assignment contract and to include a waiver of appraisal in the contract. Additionally, the host recommends focusing on the exit price rather than the purchase price, suggesting a 5-10% reduction in the after-repair value (ARV) due to appraisals coming in lower. The host also emphasizes the need for caution and conservatism in the current market, advising flippers to be aware of their hard money lender's appraisal policies and the nonrefundable nature of their earnest money. Overall, the content provides valuable insights and advice for navigating the challenges posed by hard money lenders' appraisals in the current real estate market.
The real estate market is currently facing a significant issue with hard money lenders not appraisin