120k Minimum For Lending - The Reasons

120k Minimum For Lending - The Reasons





People frequently ask me what our minimum loan amount is for a hard money loan. I explain to them that there is not a minimum amount that we will lend but the minimum ARV (After Repair Value) has to be $120,000. Sometimes they then ask if they bundle two properties worth $60,000 each if it fits that criteria. The situation would not work for our lending type. The reason this is the case is because of the exit strategy. The exit strategy for properties selling under $120,000 in our market would be to refinance. These are areas that are less likely to have a high amount of owner occupied properties. Because these are mainly rentals, eliminating the back end exit of sale for a lender is a scary position. Lenders are in the business of lending and not owning homes. We never want to take a home back and if it were to happen, we want to sell it quickly. We reduce the chances of a fast resell when we are in locations that do not sell often to people intending on making the property their primary residence.


Ian Walsh

215.839.3271

[email protected]


Dave Borrero

Owner of SolidRock Redevelopment,LLC/Agent @ Keller Williams Realty/ Real Estate Investor

8 年

great stuff Ian. thanks for taking the time to make these post, they are worth so much to new investors like myself.

回复

要查看或添加评论,请登录

Ian Walsh的更多文章

社区洞察

其他会员也浏览了