If a Purchase

• Is the property being marketed by a RE broker?  If so, this would be a true “arms length” transaction at market price.  A private sale may have a sale price that does not reflect true market value.

• Is there a purchase contract in place and do you have a copy of it?  When does it expire?  We want to make sure we can meet the time frame.

• If the contract is expired or expiring soon, will the buyer be able to get an extension?

• When will you get a copy of the purchase contract?  Remember, we cannot order an appraisal without it.

• How much is the borrower putting down?  How much is the borrower looking to finance?

Note:  Ensure the purchase is for Real Estate only.  Silver Hill will not lend on personal property, FFE (furniture, fixtures, equipment), the goodwill of a business or going concern value.

If a Refinance

• What loan amount is the borrower seeking?

• How long have they owned the property and how much did they pay for it?

• What is the payoff?  Does the borrower have debts to payoff with the new loan proceeds?

• What does the borrower estimate the property value to be?

• What is the borrower’s motivation for the loan?  Is it for cash-out, payoff private mortgage, balloon payoff, repairs to the property, or recoup out-of-pocket expenses used for repairs already made?

If the value
has increased substantially
in the past
12 months

• How did we get from Point A to B?  Can the borrower document the major capital improvements that were made to the property?

• What areas of the building did the renovations take place?  We are a sticks and bricks lender and we only give value to the market rental income of the “vanilla” box, not the gold plated fixtures inside of it.