LTV
i'm about to start bird dogging for an investor in my area and i wanted to know if anyone can tell me what exactly does LTV mean. The investor only wants homes that have a 65% LTV is that good.
i'm about to start bird dogging for an investor in my area and i wanted to know if anyone can tell me what exactly does LTV mean. The investor only wants homes that have a 65% LTV is that good.
LTV means "loan to value". That really means how much of a loan they are taking on as compared to the property value. For example, if they are putting 10K down an a property valued at 100K, then their loan would be 90K. They would have a 90%LTV.
HOWEVER, I think your investor may have used that term, but not really have menat "loan to value". He was probably meaning to talk about equity spread. If he wants 65%. He is meaning he only wants to pay 65% of what the property is worth. By worth, Imean fair market value or appraised value. It has nothing to do with what kind of loan he is planning on getting. He wants a 35% discount, so that $100K property he wants to buy for $65K
I hope that helps.
Good luck on bird dogging, and keep us posted on your success.
Eric & Rosa
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