This is Why We Can't Use Appraisals - #314

This is Why We Can't Use Appraisals - #314

Why can't private and hard money lenders rely on appraisals? In this episode of the Private Lenders Podcast, hosts Jason and Chris of Hard Money Bankers break down the real problem behind appraisals—and why valuation, not appraisers, is putting lenders at risk.

With recent DSCR loan fraud cases in markets like Baltimore and Philadelphia making headlines, the industry has been quick to blame appraisals. But the truth is deeper than that. This episode explains why appraisals alone fail for DSCR loans, fix-and-flip loans, bridge loans, and other private lending products, and why local market knowledge and borrower evaluation matter more than ever.

You'll learn:

• Why appraisals don't work for investor-focused lending

• The difference between homeowner loans and private lending valuations

• How DSCR loans expose valuation weaknesses

• Why lenders must understand local markets and borrower experience

• The risks of high leverage and institutional underwriting models

• A potential solution: in-house valuation teams vs third-party appraisals

This episode is essential listening for private lenders, hard money lenders, real estate investors, and capital raisers who want to protect their portfolios and lend responsibly in today's market.

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Are you a new or experienced private lender or hard money lender? Join Jason Balin and Chris Haddon from Hard Money Bankers as they draw from their extensive experience running a successful hard money lending company since 2007. Tune in weekly with episodes related to all aspects of private lending. From discovering lucrative loan opportunities to securing private capital, effectively managing your loan portfolio, handling defaults, and much more, we've got you covered.

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