Funded a slick deal in just 5 days

[BlueAdam69]

Sharing a recent deal I funded for an investor, the borrower had his title work done, some cash in hand, and a pretty solid plan to build a custom spec home. I started things off with an email to the title company and they looped in a local atty. for the docs. I reviewed and approved the note and deed of trust ASAP, docs were overnighted to the borrower, signed a few moments after and returned in time for me to wire the funds. We hit the borrower's hard closing date with no issues. Its not real typical to close in just five days, but with private money, ofc it's possible most especially when I do my own valuations and skip appraisals. Just needs a well prepared borrower and a strong project. Clean deal

 

[Strolingalong1]

Nice, sounds like you managed to speed things up by skipping appraisals and doing valuations yourself. What kind of leverage were you comfortable accepting for this?

 

[Annie]

How do you typically evaluate the project's strength so quickly, are you relying mostly on borrower experience, location comps, or something else when skipping the formal appraisal?

 

[BlueAdam69]

How do you typically evaluate the project's strength so quickly, are you relying mostly on borrower experience, location comps, or something else when skipping the formal appraisal?

I skip formal appraisals but run my own comps, check the location and make sure the numbers make sense. If the borrower's plan is solid and I know the area, I can move fast. Experience helps, but the deal itself has to work.