C-Loans Commercial Mortgage Lender Databank

202011 Resource 78777 78860 1071 1208683271349 1209979037115 Controlled Commercial Real Estate Lenders, Make Sure the Appraiser is Loyal to YOU

If a Commercial Real Estate Appraiser is Loyal to the Borrower, He'll Bring in an Over-Inflated Appraisal

Suppose a commercial real estate appraiser appraises a $1 million commercial building.  Because commercial real estate appraising is so inexact, he can justifiably bring the appraisal in at $1.2 million or $800,000 - depending on whether he is loyal to the borrower or the lender. Commercial real estate appraisers have a way of unconsciously trying to please the folks who are paying them.  If they are hired by the commercial real estate lender, then they will appraise the commercial property very conservatively. If a commercial real estate appraiser is hired by the borrower, however, he will too-often work hard to find comps (usually not quite so comparable) to justify a higher value.  In fact, commercial real estate appraisers have a tendency of "falling in love with the borrower."  By this I mean they become vested in the idea of helping this "poor borrower" get as large a loan as possible from this "big, mean mortgage company" who can probably afford a loss anyway because they are so rich from gouging borrowers with a high interest rate. Therefore, as a lender making commercial real estate loans, it is critical that the commercial real estate appraiser be loyal to you and not the borrower.  Otherwise, you'll be stuck with a portfolio of bad loans that are upside down; i.e., the loan is greater than the value of your collateral. This is one of the reasons why experienced commercial real estate lenders insist on ordering the appraisal themselves.  If the commercial real estate appraisal is ordered by the borrower or a mortgage broker, most experienced lenders will assume that the appraisal is tainted and over-valued. <hr style="WIDTH: 100%; HEIGHT: 2px" />Do you need a commercial real estate loan?  C-Loans is a free databank of  750 commercial real estate lenders.  You can apply to all 750 commercial lenders in just four minutes with one, simple mini-app.  <a title="Free application system to submit to 750 commercial real estate lenders." href="http://www.c-loans.com/onlineapp">Click here to apply</a>. 9 application/xml false commercial appraisers commercial loan commercial loans commercial real estate appraisers commercial real estate lenders commercial real estate loan commercial real estate loans C-Loans Commercial Mortgage Lender Databank Commercial Real Estate Loan Application System - It's Free! http://www.c-loans.com/onlineapp Mozilla/4.0 (compatible; MSIE 7.0; Windows NT 5.1; .NET CLR 1.0.3705; .NET CLR 1.1.4322; Media Center PC 4.0) 127.0.0.1 127.0.0.1 johngaudio 67.172.131.247 false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web