06/02/2026
Most people assume the safest investments are the ones with the most layers of “protection.” 🤔
More reports.
More approvals.
More third parties.
More boxes checked.
But after spending years in real estate investing and lending, I’ve learned something interesting:
Processes don’t eliminate risk.
People do.
A bad operator can still lose money with an appraisal in hand.
A disciplined operator can make excellent decisions without one.
That might sound controversial in the lending world, especially with hard money lending.
A lot of lenders don’t use third-party appraisals and instead underwrite deals internally. To some people, that sounds reckless.
I understand why.
But what doesn’t get discussed enough is that appraisals have holes too.
If a report comes in low, the loan gets reduced, the borrower gets frustrated, and the deal often dies. Over time, that dynamic can shape outcomes just like internal bias can. 👎
At Mach Speed Lending, we handle valuations in-house very carefully.
➡️ We study comps, renovation budgets, neighborhood trends, borrower experience, property condition, and so much more BEFORE funding a deal.
And as a licensed real estate agent in Virginia, I personally pull a CMA (Comparable Market Analysis) on every loan we underwrite. Having a strong pulse on our market matters. 📊🏡
Most importantly, our own capital was the first in the fund and it's at risk along with our family/friends/investors.
If a deal goes sideways, we lose money. 💰
That creates a level of discipline and accountability you can’t fake.
I’m not anti-appraisal. They absolutely have their place, and my husband and I have personally spent a lot of money on appraisals over the years for properties we've bought.
I just think the conversation around risk and valuations is much more nuanced than people realize.
The best lenders I know don’t blindly rely on reports.
They deeply understand their market, their borrowers, and the numbers behind the deal. 💪
What’s more important in lending: the appraisal or the rehabber/builder behind the deal?