OfflineI have assigned a contract to my buyer who is using a Hard Money Loan to buy the property. I am assigning to him. The hard money loan guy whom I know and refered my buyer to, met and he walked through the property approving my buyer for loan. Since I still hold the keys to property pending closing date from title company, I am the contact to open the house etc..
So, today I get a call from an appraiser who sd the hml gave him my number as the contact person to let in the property for appraisal, he mentioned by the way he gets paid the day he does appraisal and if i would be the one paying for it. Since I have already assigned it, of course I know it's the buyer's expense and have it as a contingency on the contract 'inspection of buyers choice' with a 30 day out.
**I am wondering if the HML can choose the appraiser? Also, how do buyers usually do their appraisals/inspections and is it always necessary to have an offical one done?
Advice Please ! Thanks
PUSH=Persever Until Something Happens: Dean Graziosi
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
The HM lender usually does their own appraisal using their appraiser. They need to have hard numbers to base their loan on. Whatever percentage of LTV or ARV they loan on. Usually if there will be a rehab/remodel done they want to see the scope of work that is planned also.
If I were you I would just call the HM guy and ask. I would also want to know how much he is loaning your buyer and if your buyer will have to bring any money to closing and IF HE IS ACTUALLY going to get a loan. If your buyer does not perform, having a signed assignment contract means nothing when it comes time to close.
Most of my REAL buyers do their own inspections with their own team members. They will do a sewer scope, check the roof, HVAC, etc. all within 24 hours. They estimate the standard rehab/remodel stuff on the spot. They have their own team determine ARVs. What THEY think the property will SELL for.
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Even though HML are similar, they each do things their own way. They have their own guidelines. Remember the HML is qualifying the property more than the Investor, so they will typically have an appraisal done. My HML requires one but I have my own appraiser that I use and give that one to them.
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Thank you, you words are gold. However why would my buyer need to bring money to closing? I know that he put up 500.00 earnest money to title company and my assignment fee he will pay at closing. But I'm not sure I'm understanding when you said to ask HMl if my buyer will have to bring money to closing? My Hml is in constant contact with me on closing date, we have a title commitment awaiting one final doc from seller. I have begun to establish a business relationship with him, yes I will ask him to make double sure my buyer in fact is getting the loan, i know he has met with him as well. Yes, I've already experienced on another deal wher my buyer's financing fell through last minute, so thanks for the heads up appreciate it when you comment!
If you can believe it you can achieve it!
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096
Thank you for validating, yes i've read here and on dg success academy that buyers use their appraisers important to add when creating my A team! Hope this works fr my first time buyer/investor, my first assignment deal, sellers financial distress over, all because I called her for little rent add she stuck in front of her property that I saw on my morning jog
"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia
Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096