All Topics / The Treasure Chest / finance after long settlement period

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  • Profile photo of oscaroscar
    Member
    @oscar
    Join Date: 2002
    Post Count: 41
    March 6, 2003 - 7:27 am

    Hi Guys

    Can anyone (especially reno investors) please provide details of lenders/brokers that can arrange finance based on valuation rather than the contract price. More specifically, I’ll have a 6 months settlement period with prior access to renovate. I’m trying to have the lend based on the new value (six months later) and not the contract note when initially purchased.

    Hope that makes sense!

    Cheers

    Oscar

    Profile photo of quasimodoquasimodo
    Member
    @quasimodo
    Join Date: 2002
    Post Count: 100
    March 6, 2003 - 10:24 pm

    Most lenders will let you do this, however for them to consider it, you’ll need to provide them with a good reason first. EG “I bought six months ago at full market value (show comparables) and since then prices have risen 15% (show data from someone linke RPData/Residex and/or comparables). I’ve improved the property in that time by painting, mowing etc. etc (show photo’s). If I get a valuation by someone on your valuation board showing that the value has risen by 15% will you refinance me to that value (because I’d hate to have to take my business elsewhere…. [;)]) If they say yes in writing, hire someone on their valuation board to come and do a full inspection and valuation as you show them all of the improvements you’ve made and the recent comparables. Take the valuation to the bank and collect… [:)]

    (In case you’re wondering this is a mix of Peter Spann, Dolf DeRoos and a number of other speakers who’s names elude me…[:I])

    Good luck!

    Quasimodo

    ___________________________________________________________________________
    We are all but half formed images of our true potential.
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    Profile photo of oscaroscar
    Member
    @oscar
    Join Date: 2002
    Post Count: 41
    March 7, 2003 - 3:08 am

    Thanks Quasimodo![8D]

    I also found (after extensive research) a mortgage originator that would gladly do it without the hassles that the Big 4 provide.

    Cheers

    Oscar

    Profile photo of walkernickwalkernick
    Participant
    @walkernick
    Join Date: 2002
    Post Count: 68
    March 7, 2003 - 3:28 am

    Hi Oscar,

    I am in a smilar situation… I have a 6 month settlement and intend to negotiate with the vendor to arrange for renovations before settlement.
    Would you mind mentioning which originator you found to allow a loan based on valuation rather than contract price?

    Cheers
    -Nick

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