All Forum Posts by: Amby Bhagtani

Hi - I am in the middle of closing a commercial property. The broker that I used initially quoted an appraisal of 650, which I paid. A few days later the broker said the mortgage company is asking for 2500. I am a little perplexed as to how appraisal rates could change and that too this drastically. This is the first time I am buying a commercial property, so I just dont know enough. Love some thoughts on how to handle this situation

He's not familiar closing commercial loans. 1-4 units are going to be around 650-950 for a report.

What kind of property is this?

This is a 8 unit mf (commercial loan)

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Quote from @Erik Estrada:

Quote from @Amby Bhagtani:

He's not familiar closing commercial loans. 1-4 units are going to be around 650-950 for a report.

What kind of property is this?

If he misquoted your Appraisal, imagine how he's going to handle the underwriting conditions...

Generally one brokerage has been a good firm and I feel pretty comfortable with it. This has been a one off I think but I am keeping my fingers crossed. Ty !

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Quote from @Theresa Harris:

Ask him why he is asking for more money when you already paid him $650 for the appraisal.

I did he said the mortgage company is demanding the use of only that appraiser that is charging 2500 bucks

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Quote from @Russell Brazil:

The first go around he was quoting you the cost of a residential appraisal. Then at some point he realized theyre going to need to pay a commercial appraiser.

Oh no he was aware that this is a commercial deal.

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Don't give up, rooting for you !!

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Baton Rouge, Louisiana

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Quote from @Account Closed:

Quote from @Amby Bhagtani:

I recently heard from someone who has been cashflowing using the following method:

1. Buys properties in mid-west between 30-50k in CASH

2. Owner finances them - and makes anywhere between 600-900 per month on the payments including interest

3. The best part is that he still owns the deed for these properties.

Anyone with experience followed this model before?

So, if I'm understanding you correctly, you are trying to explain what I actually do and teach. Take a look at

https://www.biggerpockets.com/forums/311/topics/1141313-subject-to-why-you-need-money-to-buy-using-subject-to-subto-safely-legally

and if that is what you mean, send me a DM and I'll explain.

Thanks Mike. Not quite or perhaps I don't understand your model. In my model I am buying descent properties in cash not making any repairs to them and seller financing them

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Quote from @Chris Seveney:

@Amby Bhagtani

Sounds like buying properties via cash and selling by contract for deed. Yes you still have the deed but it creates problems for example when they don’t cut the grass now you get fined.

Many states have adjusted the laws whereas you now still have to foreclose vs go through a forfeiture.

Contract for deeds were great 5-10 years ago but states caught up with many of the laws to treat them like traditional mortgages

Thanks Chris, why would I have to foreclose, I could just wait for the next buyer since I own the deed. Good point about the grass plus fines.

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I recently heard from someone who has been cashflowing using the following method:

1. Buys properties in mid-west between 30-50k in CASH

2. Owner finances them - and makes anywhere between 600-900 per month on the payments including interest

3. The best part is that he still owns the deed for these properties.

Anyone with experience followed this model before?

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I am looking to learn from someone who has done commercial loans for a 8 unit residential unit building. If you are on this forum please DM me. Thanks

1 Vote

All Forum Posts by: Amby Bhagtani

Amby Bhagtani has started 35 posts and replied 112 times.

Post: Appraisal Amount Increased

Post: Appraisal Amount Increased

Post: Appraisal Amount Increased

Post: Appraisal Amount Increased

Post: Feeling overwhelmed and discouraged

Post: Appraisal Amount Increased

Post: Owner Financing backed by Deed

Post: Owner Financing backed by Deed

Post: Owner Financing backed by Deed

Post: In Contract 8 unit - Ohio