Real estate investment has become quite easy with the growing demand of properties and the emergence of private money lenders in this sector. If you are supposedly going to think of investing in the state of Virginia, then you must keep in mind things that we are seeing quite a bit when it comes to hard money lenders in Virginia and here we are seeing a lot of real estate investors are actually gun shy, you know, regarding the market wondering hey is the market going up, is marketing going down or whatever the case is.
When you are in real estate business and you want to make an important decision of selling the properties at faster pace. So if the market is going up or if the market is going down it is really not relevant as long as you are getting in and out of them fast enough that it does not smash you. When private money lenders are going to talk about your rapid involvement in choosing in and out of properties fast, then there is one to be remembered. If you talk about the specific case of property deals in Virginia, where you are experiencing from real estate investors is pricing the property too high. I want to give you an example; there was a loan that was done. There are so many cases of superficial tags put on the property, and the kinds of real things in practice.
Suppose! You have borrowed money from any of the Private Money Lenders, and you have put lot of renovation activities on that property, then you need to know the real worth of the property. They made place really nice and they actually did a really good job on the fix ups but when they were done with the property, and they listed the property for $285,000. I guess that is okay but they left it there forever. They left it there for three months and then at the end of three months when loan can’t do and they started to run into some troubles whatever the case are.
The budding real estate investors would make so many changes in the property and even after spending so much time, they cannot get a real worth of sale price, as they were expecting. Here is the real value of good private money lenders come in view, as they would never want to see you in trouble and certainly tell you the real worth of property deal. I was telling you the case of the earlier said borrower, and an interesting situation developed when they lowered they lowered the price to $240,000. So when they lowered the price $240,000 they got small activity but they did not lower the price low enough. Suppose the market is depreciating, and if the property is worth $200,000 almost six months ago then the property would lose worth up to $200,000. So the ultimate result came with the lowering of the price which did not go well with the expectations of the borrower.