Hard Money
Hi, I'm a newbie here. I started reading about hard money loans but the companies that i found on line asked that for appraisal of the property before they lend you 70% of its value. So does that work for a foreclosure. I also wanted to know your preferred hard money lender.
thank in advance,
carlos
We arent allowed to recommend lenders in the forum, but I can tell you it is normal for them to want an appraisal on the property. What you can do is get an older appraisal and show them, it will then get you a commitment letter contingent upon the new appraisal being of equal or greater value. Even the private lenders will want an appraisal done on the property, as a security that it is indeed worth what you are saying.
Your costs of getting a hard money loan will be: the appraisal, points at closing, and environmental report. After that the rest can be paid for at closing, sometimes even one or all of those can be negotiated as well.
Good Luck,
Kyle