Awful Commercial BPO is giving me a headache !!

[Joel Owens]

Okay so I have this one deal closing with a buyer. Buyer has some cash to put down on a vacant apartment building.

The buyer is wanting to use a HML for the purchase and rehab. The buyer wants to purchase but the HML doesn't like the value.

I get a copy a few minutes ago sent to me.It is a residential BPO ordered because the HML was too cheap to pay for a Multifamily one.

The comps used are in a (war zone) over 6 miles away when the subject lies in a C area !

The comps also have no adjustment for location or for brick versus other exteriors or the age of the building.Comps they are using are 20 to 30 years older.

They have the subject property as one acre when it's almost 3 ! That's just on the first two pages of the ten page report.It's not the worst I have seen but they have no clue how to properly evaluate the area. The buyer doesn't want to use this HML anyway as this HML is private and wants to use his contractor crew for the buyer for the rehab and the prices he is quoting are 3 to 4k higher a door than what he can do them for.

I have a feeling this HML guy is DOUBLE DIPPING and getting a kick back from his contractor buddy for a retail inflated rehab job.

I have some other HML's that I might put this buyer onto.The BPO has estimate at 7,500 a door rehab and the HML contractor is wanting 15,000.