Hard Money Rehab Loans – Reasons For Loan Turn Downs
It’s not uncommon for a deal to make sense to a borrower, only to be turned down by the lender. There are many reasons a lender may decline a loan. We will look at the three most common reasons that almost every hard money lender gives for declining a loan even if the numbers on paper make sense. So what are those three reasons? Let’s find out below – Value Value is the top reason for a loan to be declined. Borrowers typically believe their property is worth more than it really is. It is important for real estate investors to avoid falling into this trap. Step back and look at the deal through a third party point of view. Try to poke holes in the value. Drive by the property, drive by the comps, look and see if they are really comparable. Are the neighborhoods comparable? Are the homes comparable? Try to make a case for the value being less – and when you find a deal where you cannot poke value holes then you know you have a winner. Location M