Investment Property Evaluation
If you meet our minimum personal qualifications and your property meets the minimum profit margin and has a risk score of less than 100… you loan qualifies for a Property Evaluation. This is the last thing we need to do is to be absolutely sure that youre going to make money on a deal… and it’s what sets us apart other lenders. We don’t WANT you to foreclose on your property (unlike some lenders)… we want you to sell your property and make a profit… and come back and do it again.
One of our past clients named Casey Carroll followed our system on his first two deals and generated a net profit of $95,372. Casey brought us a third deal and we told him it wasn’t profitable. Casey wasn’t convinced and chose to go with another lender on that deal. Unfortunately, the deal ended up bad like we predicted and Casey lost money on the deal. The exact same thing happened with his next deal and after 4 properties, 2 through us and 2 through another lender this is what Casey had to say:
“I’ve done four rehabs, two with DoHardMoney, two with other lenders, and the two I did with DoHardMoney actually made money while the two I’ve done with other hard money lenders lost money. If your deal passes their sniff test, you WILL be profitable they want to ensure that they’re not putting you or them in a bad position.”
This is how we knew his two bad properties were going to lose money when the other lenders didnt… Because we hire two independent licensed/insured local real estate professionals, who live, work and play in your area. In fact, we’ve even had evaluators live a couple houses down from properties they evaluate from us.
All of our evaluators are experienced & licensed Real Estate brokers or appraisers that must meet the following criteria:
- Live within 25 miles of the property
- Must be licensed
- Must carry errors and emission insurance
- Must have sold 4 properties in the area within the last 12 months
- Must have 1 active home for sale
- They will personally go to the property and take an in depth look whole interior and exterior of the property.
These are seasoned professionals and in every sense of the word they are the local experts.
The reason this works is because theyre independent evaluators paid based on providing us with a complete and accurate evaluation of the property. Theyre not emotionally involved so they can make an objective assessment.
We require two independent evaluators to go to the property to determine what the home is worth AFTER the work is completed. We require that these two evaluators are within 10% of each other on the after repair value. If they are not, we hire a third evaluator on our dime and with the three evaluations we determine what the home is really worth.
Here’s exactly what the evaluators to do to ensure your deal is profitable. The evaluators drive to the property and look at the inside and the outside. They take pictures, complete a comprehensive report that youll have access to, just to highlight a few factors thats included in the report.
- The report will include a section that shows 3-4 active comparable homes
- section for 3-4 sold comparable homes
- Assess vandalism and crime in area.
- Assess the Scope of Repairs
- Identify any potential major concerns, Meth, Foundation
- How many rentals are in the area?
- How many homes are for sale in area?
- Are Values in the Market appreciating or depreciating?
- Whats the Average Days on Market?
- Whos the most likely new buyer?
- And most importantly, the value once the repairs are complete.
There is nothing that would make this evaluation more comprehensive and if you’ve purchased a personal home recently you’ll know that the lowest cost of an appraisal is $450. Thats for an appraiser to go out just to determine the current value of the property, not the after repair value. If you ask them to do an after repair value and a Market Condition report it would cost an additional $200. So your total cost would be $650 for just ONE appraisal with an after repair value and market condition report. So on the open market youd spend at a minimum $1,300 to get two professional after repair values.
Luckily were able to get this done with our two licensed evaluators for $650 because we do so many evaluations and they love working with us and like I said if a third evaluation is needed then we cover that at our cost. So if you have a property that you would like funding on and for us to do a property evaluation before… click below to submit a loan application today.